Fast Facts: Housing Shortages
March 28, 2019
By: Guest Author, Virginia REALTORS® Chief Economist, Lisa Sturtevant, PhD
Lack of housing inventory drives up home prices faster than if there was a sufficient supply of housing. Although new home construction has picked up in recent years, in some places, it is still not enough to accommodate the increased housing demand.
The National Association of Realtors® tracks data on permits for new housing construction. Historically, a healthy regional housing market has one new housing permit issued for every two new jobs added. That is not the case in every region in Virginia.
In the Richmond metro area, over the past three years, there has been about one new single-family home permit issued for every two new jobs. The situation is similar in the Hampton Roads region.
However, in the Charlottesville and Northern Virginia regions, there has not been sufficient new housing built to accommodate new job growth. In Charlottesville, there has only been one new home built for every 5 new jobs. In Northern Virginia, the ratio is at about 1 to 4.
Check out the interactive Housing Shortage Tracker at http://economistsoutlook.blogs.realtor.org/2018/08/13/improving-housing-supply-conditions/ to provide agents with tools to help them understand trends in new construction in your market.
Any questions? Email me! email@example.com
You might also like…
RESPA & Joint Ventures: What Is Allowed?
By Laura M. Murray - March 6, 2023
We have heard reports that state Attorneys General may be taking an increased interest in certain joint venture arrangements between real estate licensees and settlement companies. Agents may… Read More
DPOR Update: Death or Disability of a Broker
By Laura M. Murray - December 5, 2022
In the 2022 Session, the General Assembly passed a law updating what happens in the event of the death or disability of a sole proprietor or sole broker… Read More
What Do Federal Reserve Rate Hikes Mean for the Housing Market and for Your Business?
By Dr. Lisa Sturtevant - April 4, 2022
In March, the Federal Reserve raised the short-term federal funds rate by 0.25 percentage points. This rate hike was the first time the Fed has raised rates since… Read More