Why is inventory shrinking in our market? There are four main reasons.
First of all, since the Great Recession of the last decade, new home construction has failed to keep pace due to shortages in land, labor, materials, and government policies regarding permits and regulations. Housing starts will total 1.3 million in 2019, and the 50-year average is 1.6 million, so we’re in a slight deficit.
Second, homeowner tenure is growing (i.e., homeowners are staying put longer). We used to say that people moved, on average, every five to seven years. In 2019, though, the average homeowner tenure is 8.3 years—a record high.
Also, during the housing crisis, a lot of investors snapped up foreclosed homes and turned them into rentals. The number of single-family home rentals grew 31% from 2007 to 2016.
Lastly, we’ve undergone a demographic shift. The number of millennials has overtaken the number of baby boomers as the largest U.S. adult population, and they’re starting to buy homes. At the moment, millennials outnumber baby boomers 73 million to 72 million.
Given this data, there’s never been a better time to sell your home.
If you have any questions about this topic or you’re considering selling your home, give me a call so we can discuss your situation and start strategizing. I look forward to hearing from you.