Harvard’s Joint Center for Housing Studies recently released their annual State of the Housing Report – released annually since 1988. Among their many statistical findings, they report that while household growth is now back from post-recession lows, new home construction remains depressed, with additions to supply barely keeping pace with the number of new households. They say several factors may be contributing to the slow construction recovery, including excess supply following the housing boom and persistent labor shortages. However, they found that the number of homeowners has risen sharply.
“Although household growth is returning to a more normal pace, our new State of the Nation’s Housing report shows that housing production still falls short of what is needed, which is keeping pressure on house prices and rents and eroding affordability. While demographic trends alone should support a vibrant housing market over the coming decade, realizing this potential depends heavily on whether the market can provide a broader and more affordable range of housing options for tomorrow’s households…”