You’ve probably heard the buzz about a housing crisis, but how serious is it? Is it simply low inventory, or is it to the point where buyers will be pushed out of the market and put in a position where they can’t afford to buy a home?
According to Zillow economist Matthew Speakman as quoted by Natalie Campisi in a Forbes.com article titled “The U.S. Faces a Housing Shortage. Will 2021 be a Turning Point?”, the situation is more serious than some think. According to Speakman, housing inventory is at “the lowest on record since the turn of the century.”
What does this mean to buyers?
- It means multiple people vying for the same property, which pushes the price up and makes homes—especially in key markets—unattainable to some, particularly first-time buyers.
- As millennials, who make up 38% of homebuyers, continue to start their families, the shortage will continue to increase.
- People are working on solutions, but it’s not quite as simple as just building more houses—although that is part of the plan.
New Construction in 2021 and Beyond
In 2021, new construction could top one million homes. If that happens, it would be the first time since 2007, and experts see the number of new homes increasing through 2023. So that’s great news, right?
Sure, but with a goal to build affordable housing, the problems of high lumber costs, supply-chain issues, and lack of buildable lots provide obstacles for builders trying to keep costs down in order to deliver options first-time buyers can afford.
While builders keep their eye towards the capital, hoping that a new deal with Canada could help lower the lumber prices—which are nearly double what they were in April—home buyers are finding what they need by leaving the very crowded urban markets and heading for the more affordable suburbs and smaller towns. For example, more people are moving out of Philadelphia and opting instead for lower-priced markets, such as King of Prussia, Allentown, Reading, and Easton.
Relocating Out of the City
That’s a solution for some, and for now, but as more jobs allow for remote work, workers are able to easily leave their city homes. That means the price increases and inventory shortages can eventually make their way to suburbs and small towns.
For now, however, the suburbs and towns outside Philly remain a viable option for many buying their first or second home.
Quality Long Distance Moving Services
If you decide to make a move, you can count on the proven expertise of the relocation professionals from O’Brien’s Moving & Storage. Our Lehigh Valley movers have the experience and expertise to tackle moves of any size or distance, all of our Lehigh Valley movers share a commitment to deliver exceptional service.
Whether you’re moving 10 miles outside of the city or opting for a home in a small town 1,000 miles away, our local and long-distance movers in the Lehigh Valley, PA provide all the services you need to enjoy a hassle-free relocation.
Give O’Brien’s Moving & Storage a call today, or fill out our online form to schedule a consultation with a relocation specialist.