Sharp Increase in New Construction Can’t Keep Pace with New Household Formation

Despite of a massive increase in building permits and new home construction, not enough homes are being built to meet demand.

That’s one of the core findings of?new research from realtor.com.

The Housing Supply Gap Expands in 2021

New households are formed at a faster pace than home construction permits are issued.

Nationwide, this gap grew from a shortage of 3.84 million homes at the beginning of 2019 to 5.8 million homes at the end of 2021.

If household formations continue at the current pace, builders would have to complete 3 times as many homes to close the gap in the next 5 to 6 years.

The South is Leading in New Construction

Builders continue to ramp up.?In 2021, 57% of all home starts were in the South, and almost 24% were in the West.

There was?a significant uptick in permitting throughout the country, with?46.3% more permits issued in 2021 than in 2015.

Austin, TX is leading the Nation with 3.5% of all new US building permits.

Columbus and other Ohio Cities are lagging far behind similar size metros like Austin, Nashville, and Charlotte.

While single family permits increased by 21.5% year-over-year in Columbus, our City only permits a quarter of the homes built in Austin.

What Does This Mean For You?

As the housing supply gap keeps widening, rising home values, bidding wars, and low inventories will continue in the foreseeable future.

Renting instead of buying is not a good alternative. Apartment vacancies have fallen to record lows last year, and rents have been rising quicker than home values.

My best advice for anyone aspiring to buy in 2022 is to build new.?

When you buy?new construction you avoid bidding wars (for now), and you lock in your purchase price now.?When you move into your new home?in 8 or 10 months, its value will likely be higher and you will own immediate equity.

Do NOT delay your dream of home ownership!

Call or Text me TODAY at (614) 975-9650!