1. New home construction isn’t keeping up with demand
- The 50-year annual average new housing starts is 1.6 million… housing starts in 2019 will total about 1.3 million
- Shortages of land, labor and materials have been putting a strain on new home construction
2. Housing stock is aging
- Over 50% of owner occupied homes were built before 1980
- Inventories will continue to lessen over time if aging homes are not remodeled or torn down and replaced
3. Demographic shift
- There are now more Millennials (73M) than Baby Boomers (72M)
- Millennials are starting to buy homes
4. Homeowners are staying put longer
- Average length of time homeowners were in the home they sold this year was 8.3 years
- Homeowner tenure was a record high in 2019
5. Homes turned into rentals
- There was 31% growth in single-family rentals from 2007 to 2016
- Investors snatched up single-family homes in foreclosure during the housing crisis and turned them into rentals
