GREENVILLE, NC (Stacker.com) – The economics of real estate is both simple and complex. As with any other commodity, supply and demand drive costs in the housing market, and right now house costs are at an all-time high, an 18% increase since September 2020. But Factors creating record inventories and increased interest buying are varied and complicated.
To illustrate how skewed the market is, we can look at months of supply. This metric tells us how many months it would take for all the homes on the market to sell at the current rate. In a balanced real estate market, that number is six. Since 2019, the average number of months of supply has fallen from around four to less than two. The number of single-family homes for sale in the United States at the start of 2021 was just 870,000, the lowest in about 40 years, according to a 2021 study from Harvard University.
Investment firms found themselves on the favorable side of the pandemic housing crisis, accounting for one in six homes and 25% of all apartments purchased in the second quarter of 2021. Investors were able to take advantage of low interest rates and the demand for rentals, especially among those whose price is out of the market.
Although the pandemic has played an important role in stimulating demand for housing, it is only partially responsible for the shortage of supply. This problem – which is actually an underproduction problem – started two decades before the world had ever heard of COVID-19.
According to the National Association of Realtors (NAR), the United States built 276,000 fewer homes per year, on average, between 2001 and 2020, compared to the previous 30 years. If the pace of production had not dropped over the past 20 years, there would be 5.5 million more homes. The NAR estimates that the United States would need to build more than 2 million new units per year over the next decade to close the gap. At best, this rate would be difficult to achieve. In the current circumstances, where supply chain disruptions affect 88% of construction projects and almost 90% of construction companies cannot find enough skilled tradespeople to meet demand, it seems like a task. of Sisyphus.
The real estate market is nuanced from state to state, and while many national trends hold true on a more localized level, it’s important to understand the context of your individual state.
To analyze each state’s real estate market, rent-to-own platform ZeroDown compiled current and historical data from the US Census Bureau and the Department of Housing and Urban Development. The data will cover homeownership rates, vacancies, foreclosures, mortgages, new home construction and manufacturing, as well as housing characteristics such as median age, square footage and number of parts for homes in your state.
North Carolina by the numbers
– Home ownership rate: 64.6%
– Owner vacancy rate: 0.5%
– Rental vacancy rate: 4.9%
– Occupied dwellings: 4,046,348
— Owner-occupied dwellings: 2,642,709, tenant-occupied dwellings: 1,403,639
— Year of construction of houses: 2014 or later (6.5%), 2010 to 2013 (4.1%), 2000 to 2009 (18.8%), 1980 to 1999 (34.4%), 1960 to 1979 (21.9%), 1940 to 1959 (9.7%), 1939 or before (4.6%)
— Number of bedrooms: no bedrooms (1.4%), 1 bedroom (6.6%), 2 or 3 bedrooms (71.1%), 4 bedrooms and more (20.9%)
— Type of heating used: utility gas (24.4%), bottled gas, tank gas or LPG (6.6%), electricity (64.3%), fuel oil, kerosene, etc. (2.6%), coal or coke (0.0%), all other fuels (1.6%), no fuel used (0.5%)
– New construction permits: 80,474 (value of $16,111,594)
– Manufactured homes shipped in the state: 4,066 (average sale price: $86,200)
The COVID-19 pandemic has created a world where some people have found the financial flexibility to buy a home and the incentive to do so quickly. Remote working, closings and record mortgage rates have pushed people, especially those under 35, who would have otherwise put off buying a home, to suddenly seek more space for themselves, their families and a yard for their pandemic puppies in less expensive neighborhoods far from employment centers and major cities.
For others, the pandemic has created a new reality of financial insecurity, overdue mortgage or rent payments, risk of eviction, and exclusion from previously affordable neighborhoods. Nearly a quarter of households earning less than $25,000 a year were behind on their mortgage payments at the start of 2021. During the same period, a fifth of all renters in the United States were behind on their payments monthly. Within these aggregate numbers, the burden of economic fallout from the pandemic falls disproportionately on low-income and minority families.
Keep reading to find out how the real estate market is doing for neighbors in your state.
Georgia in numbers
– Home ownership rate: 62.8%
– Owner vacancy rate: 0.8%
– Rental vacancy rate: 6.4%
– Occupied dwellings: 3,852,714
— Owner-occupied dwellings: 2,470,572, tenant-occupied dwellings: 1,382,142
— Year of construction of houses: 2014 or later (6.0%), 2010 to 2013 (2.9%), 2000 to 2009 (20.5%), 1980 to 1999 (37.3%), 1960 to 1979 (21.6%), 1940 to 1959 (8.0%), 1939 or before (3.7%)
— Number of bedrooms: no bedrooms (1.4%), 1 bedroom (7.4%), 2 or 3 bedrooms (62.4%), 4 bedrooms and more (28.8%)
— Type of heating used: utility gas (38.6%), bottled gas, tank gas or LPG (4.5%), electricity (55.6%), fuel oil, kerosene, etc. (0.1%), coal or coke (0.0%), all other fuels (0.7%), no fuel used (0.5%)
– New construction permits: 55,827 (value of $11,592,571)
– Prefab Homes Shipped State: 2,753 (average sale price: $83,500)
South Carolina in numbers
– Home ownership rate: 75.3%
– Owner vacancy rate: 0.8%
– Rental vacancy rate: 7.2%
– Occupied dwellings: 1,975,915
— Owner-occupied dwellings: 1,388,492, tenant-occupied dwellings: 587,423
— Year of construction of houses: 2014 or later (8.1%), 2010 to 2013 (4.1%), 2000 to 2009 (19.0%), 1980 to 1999 (33.5%), 1960 to 1979 (22.5%), 1940 to 1959 (9.0%), 1939 or before (3.8%)
— Number of bedrooms: no bedrooms (1.5%), 1 bedroom (5.0%), 2 or 3 bedrooms (70.8%), 4 bedrooms and more (22.7%)
— Type of heating used: utility gas (23.5%), bottled gas, tank gas or LPG (3.4%), electricity (70.9%), fuel oil, kerosene, etc. (0.6%), coal or coke (0.0%), all other fuels (1.0%), no fuel used (0.5%)
– New construction permits: 42,340 (value of $9,505,326)
– Manufactured homes shipped in the state: 3,533 (average sale price: $90,900)