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The number of U.S. homes for sale is the lowest in almost 50 years, and the imbalance between eager buyers and available houses will last for several years, Goldman Sachs analysts wrote in a 2 May research note.
About 1.3 million households will form annually through 2024, the bank estimates. The typical age at which people buy homes is in their early 30s, an age that more than 30 million Millennials have yet to reach.
Even before the economic shutdown, Millennials buying homes were shrinking the supply of homes for sale, Business Insider reported.
Also, the home-building industry currently is short of workers, faces record costs for a scarce supply of materials, and sees a shortage of plots on which to put up new houses. Reversing those factors, especially the shortage of lumber and land, will take time.
That will limit housing starts to about 1.5 million annually through 2024, Goldman said.
Housing starts fell 9.6 percent in April, year on year, according to the National Association of Realtors.
TREND FORECAST: Again, it’s a supply and demand issue. The fewer houses available to buy in hot real estate zones, the higher the prices will rise. However, as we continue to note, as interest rates move higher, home sales will decline. And as inflation rises and home prices increase, the affordable market sector that can afford to buy a home will shrink.