A recent article on Realtor.com says as early as 2035, housing supply could outpace demand, potentially cooling prices in fast-building markets even as shortages persist elsewhere. Citing data from a recent Mortgage Bankers Association report; they say the U.S. housing market could shift from a long-standing shortage to potential oversupply over the next decade as housing demand slows.
The MBA estimates builders could add between 10.6 million and 14.6 million net housing units between 2025 and 2035. At the same time, household growth is expected to weaken because of an aging population, declining birth rates, and reduced immigration projections. This marks a significant reversal from the past two decades, when home construction consistently lagged behind household formation following the Great Recession, creating an estimated housing deficit of 4.03 million homes nationwide.
“That simple arithmetic has profound implications for how we think about housing supply adequacy—and calls into question whether the supply shortage that defined the post-2010 housing narrative will remain the right framework for the decade ahead,” the report suggests.
Click here to read the full story at Realtor.com.
Click here to read the Mortgage Bankers Report.
