A study done by the National Association of Realtors shows a drastic decrease in the development of new homes in the U.S. leading to a growing housing shortage across the country. According to the study, the U.S. supply of homes is 5.5 million units short of what it should be. From 1968 to 2008, the construction, renovation, and investment of real estate made up 5% of the total GDP. However, from 2009, until now, it has only been 3%. While this may not sound significant, this has cost the country $4.4 trillion as a result of the decreases in spending.
Where we see this
- The number of people living at home between the ages of 25-34 has doubled since the year 2000.
- Since January, with Covid-19, the U.S. supply of housing has been ⅓ of the historical average.
- As a result of the low supply of houses, prices are driving up.
- 40% of the rental population are cost-burdened and 25% of renters are severely burdened.
The growth of more affordable housing will require:
- Federal funding.
- Communities must organize and decide on what properties are desired.
- Convert properties not being used.
- 550,000 new homes must be built per year for the next ten years.
- This would create an estimated 2.8 million jobs, and generate $411 billion per year.