Over 1 Million New Homes Needed to Meet Demand and Slow Rising Prices, According to Industry Economist
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More than 1 million additional homes need to enter the U.S. housing market to meet demand and ease price growth, per an industry economist.
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Current housing inventory is down significantly from pre-pandemic levels despite population growth.
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High mortgage rates are limiting inventory as homeowners stay put. This drives competition and keeps prices high.
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Increasing new construction and converting commercial spaces can help long-term, but quick policy fixes could boost supply faster.
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Capital gains exemptions and lower capital gains taxes for investors could incentivize more listings and sales to first-time buyers.