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America needs 7.3 million new homes

Posted by The Aramco Group on Thu, Apr 19, 2018 @ 14:04 PM

The U.S. is 7.3 million housing units short of meeting demand according to new research. The underproduction of new homes has exceeded crisis levels leading to the most rapid increase in home prices in recent history. The depth of the housing shortage is according to the Up for Growth National Coalition.

California accounts for 45 percent of the shortage, needing 3.4 million units in order to meet population growth and current demand. The effects of the acute housing shortage are far reaching with an impact on more than just housing prices. Increases in rent prices and less than stellar economic growth are in part a result of the short-supply.

"The shortage of available and affordable homes, coupled with unsustainable rising rents and stagnating incomes has become truly a national problem," said Ali Solis, an Up for Growth Board Member. "We simply need the political will to make housing a national priority."

Up for Growth is a non-profit organization that represents a group of developers and builders promoting residential development. Meanwhile, conforming no-point 30-year fixed mortgage rates averaging 4.375 percent, 15-year rates near 3.875 percent and the 5-year ARM averaging 4 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.