Pandemic Fueling Ongoing Housing Crisis as Limited Supply Meets Strong Demand
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Rents and home prices surged during the pandemic and remain high due to limited housing supply and strong demand. The US needs 3-5 million more homes.
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Low interest rates and difficulty building new homes created a "perfect storm" for high housing costs. Prices will stay elevated for some time.
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The pandemic triggered a housing boom fueled by low mortgage rates and remote work. Rents followed home prices up.
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Despite higher mortgage rates, home prices haven't fallen due to a "lock-in effect" where homeowners refuse to sell. Tightened supply further.
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Invitation Homes CEO says demand is "insatiable" for single-family rentals, a "missing segment" for those wanting yards/garages without large downpayments. Company revenues up in 2022.