Housing Shortage Coming In 2011 – Forbes.com
The focus of the U.S. real estate market lately has been the number of foreclosures and people trying to purchase cheap housing. But Brian Wesbury, chief economist at First Trust Advisors, says that if Americans don’t start focusing on building new houses, the market will have a much bigger problem on its hands.“We need one and a half million houses per year just to keep up with population growth,” Wesbury said in an interview with Steve Forbes. “And then if you throw in, you know, fires and tear-downs and just worn-out properties, we need 1.6 million or more per year. Right now, we’re down to about six and a half, seven months’ inventory whether you look at new homes or existing homes.”
It’s hard to believe that the States could be positioning itself for a housing shortage. But that’s exactly what some economists are saying. But despite the national outlook for housing, the Colorado Springs real estate area has no shortage of potential home sites. Over the past few years, land developers have platted almost a 7 year supply of lots. In a nut shell, that means that based on average new home sales, it would take 7 years for all available lots to be sold. That’s quite an inventory stock pile!
So what does this mean for new home buyers? Deals. And lots of them! New home builders now have the opportunity to purchase lots for less money, which then, hopefully, translates into more affordable housing for you and me. Combine that, with the home buyer’s tax credit, and you’ve got a win-win situation for buying a new home!
