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Housing Supply Not Keeping Up with Population Increase

Tuesday, August 20, 2019   /   by David Veenstra

Housing Supply Not Keeping Up with Population Increase

Are you wondering whether you should sell and move or build?  

Housing Supply Not Keeping Up with Population Increase | MyKCM

Many Kalamazoo home buyers are wondering where to find houses for sale in today’s market. It’s a true dilemma. We see an increase in buyer demand, but the supply available for purchase isn’t keeping up.

The number of new housing permits issued prior to the great recession increased for 15 years until 2005 (from 1.12 million in 1990 to a pre-recession peak of 2.16 million in 2005). According to Apartment List,

From 1990 to 2005, the number of single-family permits issued more than doubled, while the number of multi-family permits grew by 49 percent.

When the housing market crashed, the number of new homes permitted decreased to its lowest level in 2009 (see below):Housing Supply Not Keeping Up with Population Increase | MyKCMSince then, supply and demand have been out of balance when it comes to new construction. According to the same report,

Construction of single-family homes has recovered much more slowly — the number of single-family housing units permitted in 2018 was barely half the number permitted in 2005.”

Why is new construction so important?

As the U.S. population increases, there is also an increase in the need for new homes. Today, new construction is not keeping up with the increase in the nation’s population. The report continues:

“The total number of residential housing units permitted in 2018 was roughly the same as the number permitted in 1994, when the country’s population was 20 percent less than it is today.”

Essentially, the dip in home building coupled with the steadily increasing U.S. population means there is now a selling opportunity for homeowners willing to list their current houses.

Bottom Line

If you’re considering selling your home in the greater Kalamazoo area to move up, now is a great time to get a positive return on your investment in a market with high demand. The Veenstra Team has the best tools in the market to help you get your house sold and either find or build a new house.  Let’s get together to determine the specific options available for you and your family.  You can reach us at 269-350-5514.  We can help you determine what your options are so you can make wise financial and practical decisions.  

  kalamazoo real estate, veenstra team, exp realty kalamazoo mi, move-up buyers, kalamazoo home building

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101 W. Big Beaver Rd. Ste 1400
Troy, MI 48084

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Information is provided exclusively for consumers’ personal use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Data is deemed reliable, but is not guaranteed accurate by the MLS.
Copyright 2019 MichRIC, LLC. All rights reserved.