A new survey by Realtor.com reveals that residential housing inventory for sale has hit a 20-year low.
Baby boomers, content with their homes, don’t seem to be putting their houses on the market anytime soon, USA Today reported. Realtor.com’s survey showed that 85 percent of baby boomers said they had no plans to trade homes in the next year. The survey gathered data from 1,054 homeowners throughout the country between July 6 and July 13. Overall, 59 percent of those surveyed said they had no plans to sell their homes.
That reluctance has contributed to the inventory slump. The National Association of Realtors reported a 4.3 month supply of homes in the United States in June. That compares to a 4.6 month supply in June 2016. Six months is considered a normal inventory, according to USA Today.
“The housing shortage forced many first-time homebuyers to consider smaller homes and condos as a way to literally get their foot in the door,” Realtor.com Chief Economist Danielle Hale told the newspaper. “Our survey data reveals that we may see more of these homes hitting the market in the next year, but whether these owners actually list will depend on whether they can find another home.”
New inventory is also unlikely to emerge. Earlier this week, the U.S. labor department announced that construction job openings had increased from 163,000 in May of this year to 225,000 in June. The labor shortage will likely make it harder for developers to find workers to build new housing. [USA Today] — Grace Guarnieri