Understanding The Current Housing Shortage

Dated: September 15 2021

Views: 119

As the 2021 rea estate boom continues with bidding wars and record-selling prices, it's common to wonder how we got to this point. The pandemic and lockdown forced us to accept personal changes that we weren't expecting. Though hardships were plenty, many people came to realize that not all of the changes were negative. Working and learning from home helped us to find balance in our lives, and some befan seeking new home that were better equipped to help us embrace this new lifestyle. Others sought new homes to accommodate growing families. 


For-sale signs started popping up here and there. People were eager to find their dream home, only to be disappointed when offers were rejected. Houses were frequently sold within hours of listing, and  disillusioned buyers couldn't seem to catch a break!


But there's much more to the story. The upheaval of the past year has shed light on a problem that's been brewing for years. The housing crash of 2008-09 had a tremendous impact on the construction industry, resulting in a significant reduction in new home construction. This trend has continued for more than a decade, creating an inventory shortage of hundreds of thousands of units per year. By 2020, this resulted in an estimated shortage of 3.8 million houses, according to Freddie Mac.


While the real estate market will eventually level off, it may take longer for the construction industry to catch up with demand. In the meantime, buyers can work closely with their agents to help them understand and navigate these obstacles. 

Blog author image

Karin Waterschoot-Perez

Executive Vice President of Sales Experienced Realtor, Karin Waterschoot-Perez, currently serves buyers and sellers located in and around Franklin County. With over 18 years of experience in the re....

Latest Blog Posts

Sep 28 2021 72551 1

The market in south Florida.....There is such a shortage of homes for sale I have to keep sending buyers home with no purchase.They keep coming back and by the time they arrive 75% of the homes I

Read More

Will Remote Work Increase Home Sales

Throughout the pandemic, approximately half of U.S. employees worked remotely at some point. The monumental task of migrating the workforce to home office was remarkably smooth. Overall, little work

Read More

Understanding The Current Housing Shortage

As the 2021 rea estate boom continues with bidding wars and record-selling prices, it's common to wonder how we got to this point. The pandemic and lockdown forced us to accept personal changes that

Read More

Transition Your Landscape From Summer To Fall

The long days of summer are beginning to fade, but that doesn't mean your landscape has to. You may be ready for cooler days and all-things-pumpkin-spice, but it's not quite time to put away

Read More