A major housing crisis could be developing in the United States, especially in the country’s biggest cities. While it hasn’t made big headlines yet, many experts are warning that a shortage of available homes is getting worse, and it could become a serious problem for the government to deal with soon.
According to a report from Realtor.com analyst Hannah Jones, the main cause of this crisis is “rental availability.” In simple terms, more rental homes are sitting empty in big cities, even though some are priced reasonably. This may seem surprising, but as the rental market has gotten better, more properties have been left unused. However, even with these empty homes, the overall number of homes for sale is still very low.
Why is this Happening?
As fewer people are renting, homes that could be sold remain vacant, but they are not being added to the housing market in large numbers. This has created a situation where people looking to buy homes are struggling to find options, especially in big metro areas. Even with more rentals available, the supply of homes to buy is historically low.
What does this mean for homebuyers?
If you’re trying to buy a home in these big cities, you may have fewer choices and face higher prices. The demand for homes is still high, but there aren’t enough available, so prices stay up. On top of that, in places like vacation spots, housing prices go up during peak seasons when people want to rent or buy homes for vacations and drop when the season ends. This makes it even harder to predict home prices.
What’s the bigger issue?
This housing shortage means the country is facing a larger crisis that affects how affordable homes are for everyone. Millions of properties in important U.S. cities are sitting empty, but they aren’t helping to meet the demand for affordable housing. This could make it harder for many people to find a home they can afford, especially in major metro areas.
The government is expected to tackle this problem soon, as housing affordability and availability will be key issues in the coming months.
