Is the U.S. Housing Shortage Poised to Get Worse?
July 2021
Skyrocketing single family home prices are due in part to COVID-19 and historically low interest rates, but unlike housing bubbles of the past, also reflect shifting demographic demands and an overall shortage of housing options. What does this tell us about long-term demand and performance?
Video Highlights
A confluence of factors is driving astronomical single family home price growth (+24.4% YOY)
The U.S. is facing a structural housing shortage, particularly for lower-cost options
Elevated building material costs and labor shortages are crimping much needed new supply
Historically low interest rates is empowering aggressive homebuying activity
As households de-bundle post-pandemic and Millennials approach typical age of family formation, housing needs are elevated
Relative affordability of rentals caused apartment performance to surge in 2Q21, supporting particularly strong investor demand