U.S. Housing Supply to Remain a Major Challenge for Home Buyers in 2022

[libertybele]

U.S. Housing Supply to Remain a Major Challenge for Home Buyers in 2022

A shortfall of housing stock is set to be the biggest hurdle facing the U.S. real estate market in 2022, according to an inaugural internal survey from Compass, released Thursday.

The brokerage polled more than 460 of its agents across the country and more than half (56.4%) said that the lack of supply will drive next year’s property market.

“The greatest factor I see affecting the 2022 housing market is the low inventory,” Paulo Prietto, a Compass agent in Orange County, California, said in the report. “While inventory remains low, buyers will become more accustomed to the lack of choices and will continue to aggressively compete to purchase homes.”

Undoubtedly, the dearth of supply will ensure the market remains skewed in the favor of sellers, a sentiment shared by 76% of the Compass agents polled.

Home prices, too, are expected to feel the impact of the competitive market, with 65.4% forecasting an increase in sale prices and 76.6% a jump in rental prices—a sector of the market that may receive more demand next year as sale prices become more unaffordable, the report said. ...........

https://www.mansionglobal.com/articles/u-s-housing-supply-to-remain-a-major-challenge-for-home-buyers-in-2022-01639681180?mod=home-page&adobe_mc=MCMID%3D90560815870135193419119015873759062468%7CMCORGID%3DCB68E4BA55144CAA0A4C98A5%2540AdobeOrg%7CTS%3D1639706733

[jmyrlefuller]

So what happens when people can't afford to buy or rent?

[libertybele]

So what happens when people can't afford to buy or rent?

That poses a huge dilemma - they either stay with family or they sadly become homeless. We definitely have a problem around here of lack of affordable housing due to the influx of people moving down and it is a sellers market.

The Working Homeless: When a working wage isn't a living wage

https://www.winknews.com/2021/12/16/the-working-homeless-when-a-working-wage-isnt-a-living-wage/

[Hoodat]

So what happens when people can't afford to buy or rent?

The government steps in and makes it even worse.

[libertybele]

The government steps in and makes it even worse.

At one point in time there was talk of allowing a 'tiny houses' village around here and it got tabled.  I am glad, but the problem of affordable housing is still an issue. They are building apartments just as quickly as they can, but a 1 bedroom is going for about $1,600/mo to start.