Are you considering selling your home? Even though more homes are on the market this year than last, there’s still a significant shortage in the overall housing supply. With demand remaining high, selling your home could offer you a unique advantage. Here’s why.
Key Reasons for the Housing Shortage
1. Underproduction of Homes
For years, new homes have been built at a slower rate than demand requires. Zillow notes that in 2022, around 1.4 million homes were built—the highest number since the Great Recession. However, with 1.8 million new households formed in the same year, we didn’t even build enough homes for these new families, let alone begin to address the larger housing deficit that’s been growing over time.
2. Rising Costs for Builders
The cost of building materials, labor shortages, and lingering supply chain issues post-pandemic have all made home construction more challenging and expensive. In some areas, these increased costs have limited or halted new construction.
3. Regional Imbalances
Popular areas are facing higher housing shortages as people move to cities and regions where job growth and lifestyle appeal are strong. Here, new housing permits often fall short of demand, creating even tighter markets and driving prices up.
The Scale of the Shortage
The U.S. is currently short an estimated 3.3 million homes, according to Real Estate News. And as John Burns Research and Consulting (JBREC) predicts, the country will need around 18 million new homes over the next decade to meet projected demand. This includes homes for new households, second homes, and replacements for aging or uninhabitable properties.
What This Means for You as a Seller
For sellers, the ongoing shortage means that competition among buyers remains fierce. With fewer homes available, buyers are eager to find properties that suit their needs, which can increase the attention—and price—your home attracts. This is an ideal time to sell, as the supply gap puts you in a strong position.
Working with a knowledgeable real estate agent can be instrumental in helping you navigate your local market, set an attractive price, and connect with motivated buyers. An experienced agent understands local trends and can guide you in capitalizing on current market conditions.
Bottom Line
While there are more homes on the market this year, there’s still a widespread shortage. For those considering selling, this shortage can work in your favor. Reach out to a trusted real estate agent who can help you make the most of today’s market conditions and achieve your home-selling goals.