Way Under

The Nation’s real estate market is significantly under-supplied.

According to the most recent research from Freddie Mac, the United States has a housing supply deficit of 3.8 million units.

The available inventory today is lower than it has ever been in the last 40 years and is 3.5x lower than the peak of 2008.

The reason why available inventory is so low, is the low amount of new home starts that have occurred over the last 15 years.

Builders have faced many obstacles trying to keep up with housing demand including supply chain issues, labor supply, land availability, water availability, and stricter approval processes.

Fewer new homes were built in the decade ending 2018 than any other decade since the 1960’s.

The reality is, the obstacles builders face are unlikely to change significantly in the foreseeable future.

Low inventory is likely to persist.

An under-supplied market is a key reason leading economists do not expect home prices to crash even while the market cools off.