2019 has been one of the worst years for the housing industry in terms of available inventory. But how did we get to this point? A report from HousingWire broke down some of the contributing factors to the inventory shortage and a lot of the blame falls on homebuilders.
What caused homebuilders to stop building was an over-supply of new construction, a flood of foreclosed homes paired with one of the worst economic depressions in U.S. history since the Great Depression.
"Unsurprisingly, homebuilders did the only logical thing they could do under the circumstances: they essentially stopped building new homes. Somewhat more surprisingly, ten years later – and after the longest sustained period of growth in the history of the U.S. economy – builders still aren’t building as many homes as they used to," according to HW.
"In fact, they’re not even building enough homes to meet demand, or enough to replace homes that are lost each year to demolition, disasters, or other causes."
The publication then broke down just how intense the demand for housing is by the numbers. It also offered possible optimism for the future.
To learn more about the housing inventory woes, its origins and how it could possibly bounce back in the future, click here.