Where have all the houses gone?
According to the New York Times, the pandemic has played a large role in the lack of available housing, however, it’s not the only factor. “A majority of homeowners in America are baby boomers or older — a group at heightened risk from the coronavirus” – and if they are unable to move out or downsize, it’s a struggle for first or second time homeowners to move up the property ladder.
In addition to the pandemic, more homeowners are purchasing investments as second properties to due to the extremely low interest rates. Over the past 10 years, the number of single-family rentals grew by more than seven million, the majority of which are owned by individuals. With the rise of AirBnB, VRBO, and similar vacation property sites, owners are realizing opportunities for passive income by investing in property.
In a market as unexpected as this one, It’s hard to predict what turns it will take, but you can get the full scoop on what’s driving current conditions here.
Source: Badger, Emily, and Quoctrung Bui. “Where Have All the Houses Gone?” The New York Times, The New York Times, 26 Feb. 2021, www.nytimes.com/2021/02/26/upshot/where-have-all-the-houses-gone.html.