Why Are There So Few Homes To Buy?

One story chases another about the difficulty of buying a home.  There are more people than properties. Why is this happening?
In the past younger people bought their first house soon after the wedding, often with the help of family.

These first homes were often small and had only 2 bedrooms and 1 bath.
Within 7 years the second child came along and  the house got too crowded. The couples bought a bigger house where they could raise their children. Schools drove the purchases and children took precedence.
Once the young adults left home, these family homes got too big and the older couples downsized to accommodate their own needs and wants.
That was a natural movement flow for every generation.
Move-up buyers freed up first time buyer homes and the downsizing
of the empty nesters enabled  the move-up buyers to get a bigger house.
Because the home prices have gone up so drastically since 2012 it stopped the movement flow. The homes became worth much more than anticipated. And once you look at the kind of home you could  buy with your equity, a lesser house for more money, it starts not making sense to sell the home.
The home you can buy becomes less desirable than the house you own.
You get less house for the money. The new property taxes could double or triple.
So for now people stay put in their homes and by necessity often fix them up.
With no turnover as usual, the few homes that actually come on the market are even higher valued due to the scarcity of inventory.
Unless people have a compelling reason to move to a less expensive area and can take advantage of their equity this has become a challenge.
But fortunately there are good solutions and I have discovered some of them.
More about that in the next blog.

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