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Another Hurdle For U.S. Housing- A Shortage

June 22nd, 2010

Brace yourself for more bad news. There is a housing shortage coming to the U.S. in 2011. If this happens prices will rise.

This is great news for all the homeowners with mortgages underwater. But, wait a minute. Don’t we have millions of houses sitting in foreclosure? In May there were 315,716 foreclosure filings. And what about the shadow inventory that banks are holding? This inventory should take about three years to clear.

According to Brian Westbury, chief economist at First Trust Advisors, we need more than 1.6 million houses each year to keep up with population growth.

The experts have not factored in the fact that lifestyles are changing. College graduates can’t find jobs so they are moving back home with their parents. Some are sharing houses with 3 or 4 roommates. And others are postponing marriage and raising a family.

The house buying decision has been delayed and this situation will remain until the job prospects are better in the U.S.

Entry Filed under: Housing Inventory