Are you floored by the costs of home improvement or scared of buyers' remorse in this sellers' market? If you are on the sidelines waiting for costs to decline, know it could be decades!
The imbalance in housing supply vs demand isn't going away:
The US has under built for over a decade. By millions.
Currently, many residential projects are being placed on hold as financing costs have made them less attractive. Restarting stalled projects can take months...sometimes, years. Looking for new construction? Be prepared to buy pre-construction & live elsewhere while the home is completed.
The world's population keeps growing. Right now it's about 8 billion, by 2050 it is estimated to rise to 9.8 billion. Imagine the need to house an additional 1.8 billion people.
An estimated 1.5 million people immigrate to the US each year. Some say it's far higher than this. They all need a place to live.
Today around 17% of Americans are 65 years and older....by 2040 that is expected to be above 21%. Longevity plus technological advances are keeping people in their own homes.
The percentage of wealthy people is growing and they buy homes, often more than one.
The constraint on resources goes beyond supply chain issues:
Demands on limited resources and commodities needed for building keeps growing.
De-globalization is bound to make building materials more expensive, even after shipping cost savings.
The median age of an American home hit 43 years in 2021 (Harvard Joint Center for Housing Studies), up from 27 in 1991. Currently 35% of US apartment stock is at least 60 years old. Necessary renovations of these aging properties will produce further resource constraint.
More frequent extreme weather events could require even more home repairs and replacements.
The US $1 TRILLION infrastructure bill will place enormous demands on building materials and labor for the next decade.
As your real estate partners, the KMS Team is ready to identify options and help you formulate intelligent real estate strategies for life. Give us a call to discuss your goals today.