For years, we’ve been promised that a “tsunami” of homes would hit the market as Baby Boomers age, move into senior housing, and pass away. We’ve been waiting…and waiting, but we’re still millions of housing units short. Yet, even without a “silver tsunami,” another trend could push us toward a housing supply glut in the future—new builds.
Builder sentiment has dropped to a seven-month low. Homes are sitting empty, huge concessions are being offered, but the buyers are few and far between. Longer absorption periods mean higher holding costs for builders, prompting larger incentives to sell these homes. But, with mortgage rates bouncing back up to the mid-six percent range, who wants to buy? Very few Americans, and that’s the problem.
Between Baby Boomers slowly trickling inventory into the housing market and builders creating more supply than (financeable) demand, is this the tipping point where we go from an undersupplied to an oversupplied housing market? In this headline episode, we’re getting into it, plus a “ban” on one of America’s hottest real estate assets.
In This Episode We Cover
Is the silver tsunami ever going to hit? Why Baby Boomer homes aren’t reaching the market
Where home prices have the highest chance of falling if the Baby Boomer supply hits the market
The major opportunity for real estate investors to pick up seriously discounted new-build homes
A new real estate asset “ban” that’s affecting over 15 states in the country
Will we flip from a housing deficit to oversupply?
And So Much More!
Links from the Show
Join the Future of Real Estate Investing with Fundrise
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Find Investor-Friendly Lenders
On the Market 403 - You Have Until 2031: What Happens When Population Starts to Decline?
Calculated Risk
Reuters: US home builder sentiment drops to seven-month low in April, NAHB survey says
WSJ: America’s Self-Storage Craze Has Reached a Tipping Point
Associated Press: The US is short 10 million houses. A new White House report lays out a blueprint to fix that
Dave's BiggerPockets Profile
James' BiggerPockets Profile
Kathy's BiggerPockets Profile
Grab The Book on Negotiating Real Estate
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-418.
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