Huge Housing Shortage Forecast for 2020
An “historically low” level of housing inventory is on the horizon for 2020.
As Realtor.com’s senior economist George Ratiu explains, “Real estate fundamentals remain entangled in a lattice of continuing demand, tight supply and disciplined financial underwriting. Accordingly, 2020 will prove to be the most challenging year for buyers, not because of what they can afford, but rather what they can find."
So, what factors are driving this incredible shrinking market?
First off, more and more Baby Boomers are staying put in their homes. Currently, 55.2% of all owner-occupied homes are owned by people age 50 or older. A second factor: The average time a homeowner has lived in their home keeps going up, now averaging 13 years. If they “stay,” there’s no play.
Combine these factors with the sobering fact that eager prospective homebuyers are being priced out of the market, and you have a recipe for continued contraction.
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