Between 2012 and 2019, 9.8 million new households were formed while only 5.9 million single-family homes were built, according to Realtor.com. Even though new housing starts are increasing, it will take home builders 4 to 5 years to make up the almost 4 million home deficit and get back in balance with the market.
“The current inventory crisis and the need for 3.8 million new homes means a nearly insatiable appetite from potential buyers, especially in the lower end of the market,” said Javier Vivas, director of economic research at Realtor.com