Even though there are more homes on the market compared to this time last year, there are still more buyers than available houses. So, if you're thinking about moving, your home can really shine and stand out.

You know, there are a few key reasons why there just aren't enough homes to go around these days. Understanding these reasons can actually help you see why the market is working in your favor if you're ready to make a move on a new home. Let me break it down for you.

What’s Causing the Shortage?

1. Underproduction of Homes: For years, the industry hasn't built enough homes to keep up with demand. As Zillow explains, the housing market has struggled to meet the growing need for new homes, leading to a persistent shortage that has driven up prices and made it increasingly difficult for many Americans to find affordable housing.

““In 2022, 1.4 million homes were built — at the time, the best year for home construction since the early stages of the Great Recession. However, the number of U.S. families increased by 1.8 million that year, meaning the country did not even build enough to make a place for the new families, let alone begin chipping away at the deficit that has hampered housing affordability for more than a decade.”
”

— Zillow

2. Rising Costs: Building homes has gotten tougher and more expensive thanks to rising costs for materials, labor shortages, and pandemic-related supply chain issues. These challenges can slow down or even halt new home construction in certain areas.

3. Regional Imbalances: Some areas feel the housing shortage more than others, especially popular places where people are moving in faster than homes can be built. In these high-demand regions, the number of new building permits often can’t keep up with job growth, which makes the housing market even tighter and pushes prices even higher.

How Big Is the Problem?

Real Estate News estimates that the U.S. is currently short about 3.3 million homes, based on an average from various expert insights (see the graph below):

This highlights just how many homes are needed to meet current buyer demand. But what about future demand?

John Burns Research and Consulting (JBREC) estimates that over the next decade, the U.S. will need around 18 million new homes to keep up with demand. This includes homes for new households, second homes, and replacements for aging or unusable properties.

Even though there are more homes on the market than last year, it’s still not enough to meet demand. If you’re ready to sell, this shortage could really work in your favor.

What You Need To Remember

If you’re considering selling, the current shortage of homes means your house is likely to catch serious buyer attention. It’ll take years to overcome this inventory gap, and the market remains tight. With buyers competing for a limited number of homes, there’s more interest in those available, which can drive prices up and work to your advantage.

Since every market is unique, it’s key to work with a real estate agent who knows the local trends. They can help you set the right price and develop a strategy to attract the best buyers.

Bottom Line

Even though there are more homes for sale now compared to this time last year, there’s still an overall shortage. That puts you in a strong position as a seller. Let’s connect so you have someone to help you make the most of today’s market.