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| It took almost four years to build The Carlyle in Minneapolis, a 2009 NAHB Pillars of the Industry Award winner. (Photo: Humprheys & Partners) |
Slow Recovery May Be Leading to Serious Housing Shortages
Even as foreclosures continue to flood some of the worst-hit housing markets in the country, economists are beginning to sound the warning that today’s extremely low levels of new residential production could lead to significant housing shortages, especially among market-rate rental apartments, as household formation rates return to normal.
The housing downturn and economic recession have kept household formation rates at below-normal levels for roughly three years, said NAHB Chief Economist David Crowe. As the economy moves to higher ground, the housing market will begin to feel the pressure from new households, he said, and there will be a surge of demand from echo boomers, who comprise an even larger group than their baby-boomer parents. ...
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