To accommodate current and future demand this decade, the home building industry must build back from a deficit of 17.1 million housing units, but according to John Burns Real Estate Consulting, the industry’s efforts must first be concentrated on the most undersupplied regional markets. The nation’s five most undersupplied markets—based on current vacancy rates lower than their historical norms—include Riverside-San Bernardino, Calif., West Palm Beach, Fla., Tampa, Fla., Phoenix, and Fort Worth, Texas.
Not only are the popular markets such as Riverside predominantly undersupplied, but they’re also seeing softening rents and declining home prices amid an ongoing market correction leading to a nationwide slowdown in home sales.
Until recently, builders were very much on pace to build what was needed, starting 1.71 million homes in 2021 and 1.65 million homes in 2022. Due to the current affordability crisis, they will fall far short this year, although they will finish many of those homes and offer them for sale or for rent sometime in 2023.
Advertisement
Related Stories
Demographics
Gen Z Ranks Housing Affordability as Biggest Concern Ahead of 2024 Presidential Election
While the issue is most important to young voters, 80% of Americans rank housing affordability as a top priority when considering who will have their vote
Affordability
Cinnaire Closes $175M Equity Fund to Create or Preserve More Than 1,200 Affordable Homes in the Midwest
To date, the nonprofit organization has closed more than $5 billion in tax credits for affordable housing in 10 states
Financing
10 States Where Shopping Around for a Mortgage Really Pays Off
In California, homebuyers could see savings of more than $130,000 over the lifetime of their loans
