Faced with an unprecedented housing shortage, the United States has few affordable homes to offer prospective buyers. The housing market has not been easy for buyers in recent years. Could recent changes influence the housing shortage? With some understanding of recent trends and real estate training, you may soon see the gap between supply and demand narrow.
A Growing Demand for Homes
Since 2007, demand for homes has been growing. The number of households is growing steadily, and the consequences of not being able to find a home to live in include resentment toward gentrification in many neighborhoods, especially with increasing homelessness. In areas where home prices are rising due to the growth of the tech industry, this is especially true.
A Quickening Pace for Building
Real estate professionals learn a lot about the market by analyzing both the number of building permits approved and the housing starts in the region. In the last year, building permits have increased eight percent. The northeastern United States saw the biggest jump in building permits percentage-wise, but the largest annual gain appears to be in the Midwest.
Housing starts also rose significantly in the last year, by about 20 percent. The units meant to be built before the end of 2018 have also increased. Of course, the fact that companies are building new homes does not mean that the housing shortage is nearing an end. In the past, builders have been forced to shut down construction based on lack of demand. Whether or not homes sell is another issue.
A Changing Legal Landscape
Legal issues are common components of real estate training, especially with new laws emerging to ease restrictions on housing units like guesthouses. In some locations, these guesthouses were not allowed permits due to zoning issues, but some communities are changing their stance based on the housing shortage. Could building multiple homes on one lot cut down on the demand for homes?
An Existing Financial Issue
While new homes are being built, this does not mean everybody will be able to afford them. The cost of new homes is approximately 21 percent higher than the cost of existing homes. Plus, buyers considering new homes must also think about the inconvenience of waiting for a home or nearby resources to be built. For many buyers, an existing home is alluring.
Real Estate Training for the Future
The real estate industry is ever-changing, and even real estate professionals cannot always make accurate predictions about the changing face of home availability. Nobody knows exactly what the future holds for the housing crisis, especially in a time when younger people are struggling to purchase their first homes.
The best any real estate agent can do is focus on real estate training so it can prepare them for the coming changes. If you are ready to get started, choose your state now!