By: Staff Report//November 30, 2020//
By: Staff Report//November 30, 2020//
Freddie Mac (OTCQB: FMCC) has released an Insight elaborating on its previous research, The Major Challenges of Inadequate U.S. Housing Supply, by taking a closer look at the housing supply shortage on a state-by-state basis including domestic migration. Years of underbuilding has created a large deficit, particularly for states with strong economies that attracted people from other states. The construction deficit in these states has partly led to Americans moving to more affordable interior states, which led to the need to build more housing units in order to accommodate their growing populations.
“We are in the midst of a demographic tailwind, and we expect home purchase demand will remain strong well into the next decade as the peak cohorts of Millennials turn thirty years of age in 2020 and beyond,” said Sam Khater, Freddie Mac’s Chief Economist.
“Simply put, new housing supply is not keeping up with rising demand. We estimate that the housing market is undersupplied by 3.3 million units, and the shortage is rising by about 300,000 units a year. More than half of all states have a housing shortage, and the shortage is no longer concentrated in coastal markets but is spreading to the middle of the country in more affordable states like Texas and Minnesota,” added Khater.
Insight Highlights:
Freddie Mac’s Economic & Housing Research group regularly releases its Insight which provides original research and analysis on current topics of importance to housing and the broader economy.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide.