there is not a housing shortage..
its propaganda because the financial crises is causing house prices to drop and home owners dont want that so they want to pretend there is a shortage to pump the dump
here is the whole game
imagine its 2000 and its estimated that a house should be 5x income
a person at $40k income should buy a affordable house at $200k but a bank convinced them to take out a $250k mortgage and get a better home. on a 20 year mortgage
that is a inflation of $50k
that person then pays interest meaning their home is then costing $300k
and over 20 years its took alot of harsh saving to ensure all payments are met
they wont to sell for less then that cost so want to sell for $350k for $50k profit for 20 years effort.
now they are stuck because they should have only had a $200k house but want to sell the house they got for $350k
its not selling.. people are not moving home in 2020
now its 2022 and house is on the market for 2 years.
and now financial crises is wiping 20% off the market meaning $70k
do you want to sell house for $280k when break even was $300k meaning you have not even broke even.
so instead home owners want to pretend there is a demand to bring prices back upto atleast $300k+
it wont work as no one wants to take out a mortgage on higher interest to buy your bad debt home
after all if your 2000 mortgage of 8% got you into debt. why would they take out a 6% mortgage to buy your house thats been on the market for 2 years and over priced
Topic: The US housing shortage is 'awful' with no apparent end in sight (Read 99 times)
December 07, 2022, 03:27:32 PM
It's normal, it happens. If in this region, real estate prices are high, and your income is low, then you probably need to change something? Or try to increase your income. Or find an area with a lower rental housing, or if it is an "expensive city" - change the region to a region with a more affordable rental price?
Well, you must admit - it’s stupid to say, for example, that “it’s not fair that I work from morning till night at a low-paid job and I can’t buy myself a Rolls-Royce, which I want so much! This is a wild injustice, this must be changed urgently!”
Maybe you still need to measure your capabilities, in this case financial, with requests? And if you want a higher standard of living, then you need to do something for this, and not continue to work in a low-paid job. Am I wrong somewhere?
And if we talk about the lack of housing - it is ALWAYS not enough or it is expensive in the capitals of states, large economic centers and native agglomerations. This is fine ! But its huge number in other cities and regions! But there is not so comfortable, I agree.
Well, you must admit - it’s stupid to say, for example, that “it’s not fair that I work from morning till night at a low-paid job and I can’t buy myself a Rolls-Royce, which I want so much! This is a wild injustice, this must be changed urgently!”
Maybe you still need to measure your capabilities, in this case financial, with requests? And if you want a higher standard of living, then you need to do something for this, and not continue to work in a low-paid job. Am I wrong somewhere?
And if we talk about the lack of housing - it is ALWAYS not enough or it is expensive in the capitals of states, large economic centers and native agglomerations. This is fine ! But its huge number in other cities and regions! But there is not so comfortable, I agree.
November 17, 2022, 06:20:51 PM
Quote
- Experts say the decades-long U.S. housing shortage is only going to get worse in the next year.
- Top economist for homebuilders says due to rising mortgage rates, the 2023 market will be "weak."
- Policy expert: "We're seeing housing underproduction in every corner of the U.S."
How dire is the decades long housing shortage in the United States?
Awful according to recent data, experts say. And there's apparently no improvement for the foreseeable future thanks to continued demand for homes despite rising mortgage interest rates and high home prices.
"There doesn't appear to be any end in sight," Nadia Evangelou, a senior economist and director of forecasting for the National Association of Realtors told USA TODAY.
Depending on who you ask, experts believe there is a nationwide housing shortage of between 2 million to nearly 6 million newly built homes.
Evangelou said the association estimates there's a shortage of 5.5. million homes. The organization uses its housing shortage tracker to compare the supply and demand by the number of single-family housing permits issued for every two new jobs in 175 U.S. markets.
It's finding: Cities both big and small are dealing with severe underbuilding.
Where are the biggest housing shortages?
The more severe underbuilding is happening in major cities, according to experts.
For example, Los Angeles is among the most underproduced housing market in the U.S. with a shortfall of nearly 400,000 homes or about 8.4%, Mike Kingsella, CEO of Up for Growth, a Washington, D.C.-based housing policy research nonprofit, told USA TODAY. In July, Up for Growth released a study tracking more than 800 U.S. housing markets across the country from 2012 to 2019.
And similar to Up for Growth, the National Association of Realtors also cites LA as among the big cities with severe housing shortages. The LA metro area had 247,400 new jobs compared to 11,206 single-family permits, the Evangelou said.
Still, LA is not the more severely underbuilt.
That distinction belongs to the New York City-Newark and Jersey City, New Jersey metro area. There were nearly 497,000 new jobs compared to 13,229 single-family permits issued in that metro area during that period, Evangelou said.
Other areas that have high housing shortages include the San Francisco-Oakland-Hayward, California area, the Boston-Cambridge-Nashua, Massachusetts area, and the cities of Springfield and Rockford, Illinois.
Will the housing shortage spread?
Once confined to the coasts and the Southwest, the lack of enough housing production to meet demand now affects nearly every state and several major metro areas in America, Kingsella said.
"We're seeing housing underproduction in every corner of the U.S., said Kingsella, whose nonprofit estimates there's a 3.8 million housing shortfall. "And it's certainly not going to get any better as we see interest rates climb while trying to tamp down inflation. This also means we are perversely increasing housing costs."
Can zoning fix the housing shortage?
Cities with single-family housing shortages typically share similar traits, Evangelou said including land-use restrictions that affect building homes.
Kingsella said many cities and states need to change or update zoning laws to allow for more housing. Kingsella said states including California, Oregon and Maine and cities like Austin, Texas, passed laws to end single-family zoning and now allow the construction of more than one home per parcel of land.
Where is the housing market heading?
Despite a slightly rising inventory due primarily to price-weary prospective buyers, supply is expected to remain short for some time to come, said Robert Dietz, chief economist for the National Association of Home Builders.
In a statement last week after the NAHB homebuilders group said homeowner confidence is down for a tenth straight month, Dietz said single-family homebuilding will see a steep decline next year, "as higher interest rates and ongoing elevated construction costs continue to price out a large number of prospective buyers."
The 30-year fixed mortgage rate on Monday was 7.29%, according to Mortgage News Daily, marking the highest 30-year rate in 20 years.
"Nobody saw this coming. We thought maybe a max of 5%, but not a 7% interest rate," said Evangelou, adding that the National Association of Realtors had to readjust its forecast several times this year.
Also, the median sales price for homes in the U.S. was $384,800 in September, an 8.4% spike from the $355,100 price tag in September 2021 as prices climbed in all regions, the association reported.
Assuming a 10% down payment, the monthly mortgage is $1,000 higher than a year ago, Evangelou said.
Last month, Federal Reserve Chair Jerome Powell said the housing market might need "a correction" to make homes more affordable.
Dietz predicts the Federal Reserve will ease up on interest rates no later than 2024 which will lead to a rebound in the housing industry.
"The market for 2023 will be weak until then," Dietz said. "Home prices will remain high and supply will be low."
https://www.usatoday.com/story/money/2022/10/26/housing-market-worsens-mortgage-interest-rates/10588515002/
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Many celebrities like Joe Rogan have acknowledged the existence of a homeless encampment in california with an estimated 60,000 people.
PowerfulJRE
Taken from JRE #1798 w/Michael Shellenberger:
https://www.youtube.com/watch?v=TsTDA2DT72k
Many of the homeless in that area have stable full time jobs and are working as much as they can. Yet they still cannot afford rent for listings in their region. So it seems that the united states has something resembling a housing crisis on its hands, which has worsened considerably in recent times.
While a negative correction of home and real estate prices in the country might be bad for large institutional investors who will lose net worth. It would simultaneously be beneficial for lower income brackets to make housing more affordable.
While the above piece predicts a weak housing market due to high interest rates on home loans. I would only like to suggest that this could be a positive, rather than a hard negative. As it could lead to a massive reduction in home prices. A so called "massive collapse in housing prices" which many have predicted.
Lack of construction in areas like LA or las vegas is completely understandable given that lake mead is drying up. Which could leave the entire region without a supply of water. But really I think one of the main driving forces behind real estate demand is high paying jobs. Most construction firms cater to the high income bracket demographic. Rather than the low income demographic. Which only leaves development for high priced real estate in a market where low priced housing is scarce.
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