Home News U.S. housing market’s underproduction crisis getting worse, new analysis finds

U.S. housing market’s underproduction crisis getting worse, new analysis finds

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Up For Growth, a non-profit organization working on a solution US housing shortage, It is warning about the lack of housing production nationwide.

according to Studies released by the organization On Thursday, the US housing deficit more than doubled from 1.65 million to 3.8 million between 2012 and 2019.

In 2012, the country’s affordability issues seemed to be concentrated in the coastal and southwestern regions. However, Up for Growth has identified housing shortages in a total of 47 states and the District of Columbia as of 2019.

Housing production shortage, 2019: for growth

According to a survey, the average state of the United States will be short of 79,000 homes in 2019.

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California leads housing inequality There is a shortage of 980,000 homes, followed by Texas with 322,000, Florida with 289,000 and New York with 234,000.

Other states with significant declines in housing production in 2019 include Washington, New Jersey, Colorado, Arizona, Illinois, Georgia, Massachusetts, Virginia, Minnesota, Oregon and Utah. Six new states that have been added to the underproduction list since 2012 include Mississippi, Missouri, Nevada, Oklahoma, Rhode Island, and South Carolina.

New housing construction

Lumber on the site of a house under construction in Cielo, Sand Creek, by Century Community Housing Development in Antioch, California, USA, Thursday, March 31, 2022. (Photographer: David Paul Morris / Bloomberg via Getty Images / Getty Images)

Housing shortages increased from 100 in 2012 to 169 metropolitan areas in 2019. The deficit became more serious in 230 cities in 2019 compared to 2012.

Metro areas with the most severe housing production in 2019 include Los Angeles, New York, Miami, Riverside (California), Washington DC, Chicago, San Francisco, Phoenix, Atlanta and Philadelphia.

Since 2012, only 25 metropolitan areas have experienced an improvement in production shortages or a reduction in housing deficits.

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To help solve housing shortages, Up For Growth is a Better Foundation framework that aims to build more homes in areas with high economic mobility, access to employment and existing infrastructure. I am seeking the adoption of.

Up for Growth estimates that building 3.8 million additional homes through the Better Foundation framework will save US households a total of $ 117 billion and an average of $ 3,000 a year in 20 years.

After 30 years of production, the plan will generate an additional $ 209 billion in total domestic production in the United States, $ 111 billion in personal income, $ 7 billion in net revenue in local jurisdictions, and $ 4.4 billion in federal revenue. Expected to produce.

“It is important to act now to address the most urgent economic, environmental and social equity crisis in the United States,” said Mike Kingsella, CEO of Upfor Growth, in a statement.

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According to Realtor.com, active home inventories for the week ending July 9 increased by 28% compared to a year ago. This change happened as new listings went online for a few weeks and inventory levels increased by almost one-third compared to a year ago.

“The real estate market remains undersupplied compared to 2019, but it’s heading in the right direction,” Realtor.com senior economist George Lightu said in a statement.

The median listing price has risen 15.9% from last year and has continued to rise at a double-digit annual pace for 30 consecutive weeks. However, listing prices are on a downward trend, below the pace seen in late May to early June.

Realtor.com expects house price increases to continue to ease in the coming weeks and slow down in the second half of 2022.

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