Housing Shortage Leaves Buyers With Few Good Options as Crisis Set to Last Over a Decade
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There is a massive housing shortage in the U.S., with estimates ranging from 2.3 million to 6.5 million missing homes. This shortage has driven prices up across the country.
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The pandemic led to a surge in homebuying, exacerbating shortages and causing prices and mortgage rates to skyrocket. Now there is a frozen market where few are selling or buying.
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Economists believe the housing crisis could last a decade or more. Even when mortgage rates fall again, demand will greatly outstrip supply, pushing prices higher.
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Local zoning reforms may help boost building, but not enough to satisfy pent-up demand from buyers. Market imbalances will continue for the foreseeable future.
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Potential homebuyers have few good options - buy in cash, buy and refinance when possible, make a large down payment, or resign themselves to renting indefinitely. The shortage makes buying unrealistic.