Why do We Need 5 Million New Homes?
Five million homes. That’s how short we are right now in the country as far as supply goes with supply and demand.
We have a short supply issue and we need to solve that. I’m going to point to an article here and we’re going to share that and split the screen and discuss it. We’re going to kind of figure out how in the world are we going to catch up? Where did all of this come from?
You know, and as I kind of look at it, what the big change is going to be here is some small towns that are shrinking. People don’t want to be there anymore. So there are homes that are supplied, but they’re not in the right location. So that doesn’t really count.
So this is what we have is five million and home builders are trying to build as much as they can, but they can’t make up for this short supply. So as an agent, we always want you to have some additional information that helps you out with your clients.
And this is an article here that you can point to in reference to and discuss national numbers, but show how it’s affecting us here locally in our market.
So what this is doing is going through and wow, that’s a heck of a neighborhood getting built there where it’s a lot of new construction going on.
But we basically have this problem is we can’t catch up. People are moving all over the place and the virus had all types of impacts on us and one of them is relocation diffusion, where people are moving all over the place and they’re going to new markets now and not staying in the ones that they were at before.
So now all of a sudden, we have five point two, four million homes that we are sure. And back in twenty nineteen, we were short one point four million homes.
Now there’s a lot of things that go on with that. But the one that I think that’s the most prevalent is people don’t want to live where they lived before.
So they’re moving and there’s not a demand for this house in this old market. So that house is just kind of like sitting there, but it’s no longer demanded.
So if you think about our small town that we grew up in Binghamton, New York, they’re like ripping houses down there.
And in some certain bad neighborhoods, they’re just like, now, we don’t need this house anymore. It’s not demanded and we’re getting rid of it and getting rid of supply.
So as we transition down here, there needs to be a home built for us to live in Dallas Texas, right? So new construction and new demand.
But there was a home there, but that home might not any longer be there. So we do have a growing population, but slowly growing. But we do have people that want to be in all these different types of markets. So new construction now is definitely under strain.
And it’s not that, you know, prices for everything are going up, it’s just that we need to have them all over the place in different locations. You kind of can’t move a home once you put it there, it’s there. And it’s all about location, location, location in real estate.
In addition to that, what it’s also about is it’s about age, style and function. Those are things that people are looking for.
So it’s not necessarily just the space where it is, but if you think about hyper locally, people now want things different. You know, if they age and they’re a little bit older, they want to have that main bedroom downstairs instead of upstairs. So that has to do with age, as do the age of the home.
What colors are they inside? Is it this color or that color? And when it’s this light or Pantone, it’s a newer home most likely, right? So it has a lot to do with the age of the home, the style, what features are inside, what’s going on in there? Is it open floor plan? What are these things?
Can you see how? How is it orientated? There’s a lot of stuff like that. And then function, how does it function? That’s an important aspect as well. Are there two home offices? Does it face the direction that’s important for your religion, right? Is it feng shui?
Are there certain features and functions that you as a consumer demand? So those are different things. So in addition to location, location, location, I’m going to add three new things to that that you should maybe just take a pen and write them down and then consider them age, style and function.
So if somebody ever says real estate is all about location, location, location, say yes, and it’s also about age, style and function.