Categorized | Residential

The U.S. Housing Shortage … It’s coming!

The U.S. Housing Shortage … It’s coming!
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US population has entered the year 2011 with an ever increasing population of more than 310.5 million, these figures being in accordance with the U.S. Census Bureau ballpark figure. This figure when compared their population at the end of 2009 i.e. 308.4 million, shows an increase of 2.1 million persons, a 0.6 percent augmentation in a single year.

According to Harvard University’s Joint Center for Housing Studies, in order to meet the demand of this growing population, 16 million new housing units need to be established, as quoted in their annual publication “State of the Nation’s Housing” report.
People, for the past couple of years, have been diverted towards foreclosures and purchases of inexpensive residences; but according to Brian Wesbury, chief economist at First Trust Advisors, a bigger problem than the attainment of cheap housing is sure to strike if new houses are not built in order to accommodate the populace. Half a million houses are needed to keep pace with the population mount, according to Wesbury.

Another economics researcher at UNC, Karl Smith, is of the view that America has an abundance of housing but this housing is luxury, expensive housing; clearly not required in the financial depression hit economy of today. In the span of 1990 and 2005, new homes were built majorly in the “expensive” bracket.

This problem is reminiscent of the situation America suffered during the Great Depression when real estate expansion hit the ground to a halt, and when it was back on track again World War II slammed the brakes on its assembly.

 

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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