Odd Lots This Is How the U.S. Ran Out of Homes for Sale
Jun 7, 2021
Ali Wolf, Chief Economist at Zonda, shines a light on the U.S. housing market's astonishing growth amid a severe shortage of homes. She outlines how demand is skyrocketing, even surpassing pre-crisis peaks, yet supply is hopelessly lagging. The conversation delves into the impact of remote work and demographic shifts on home buying, along with the hurdles caused by rising prices and insufficient new constructions. Wolf also tackles the daunting challenges facing builders, including labor shortages and supply chain disruptions.
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Builder Scarring and Underbuilding
- The 2008 housing crisis scarred builders, making them cautious.
- This led to underbuilding in the subsequent decade, as builders prioritized safe deals.
Pre-COVID Housing Shortage
- The pre-COVID housing market was already tight, with limited inventory.
- Multiple factors contributed to this, including investor activity and Prop 13.
COVID-19 Housing Demand Surge
- The COVID-19 pandemic triggered a surge in housing demand from various demographics.
- Gen X, enabled by remote work and savings, entered the market alongside millennials.