Vacant Lots, Smaller Homes, and the Housing Shortage Question: What’s Really Going On?
This idea is the latest one that has been thrown around. The idea is simple…to increases the inventory level of homes, which will help prices from rising in a frenzy like pace. It is also rumored that builders are intentionally sitting on vacant lots in order to keep prices higher. 2 Million vacant lots throughout the United States. Builders do build in phases, but that’s not anything new. They will release only a pre-determined amount until they sell more, then release some more. If builders are agreeing to sit on all these vacant lots, they run the risk of anti-trust laws slapping them where it hurts. Check out this article: Trump Urges Homebuilders To Boost Construction and Stop ‘Sitting on Empty Lots’
The other part is for builders to build smaller homes, which will help with prices. Smaller homes can equal to less materials used and lower prices for buyers. How small would buyers be willing to go? Major Homebuilders ‘Weigh Plans’ for a Million Entry-Level ‘Trump Homes’ Reading that article seems to me that some of the builders were unaware of this plan.
Is There Really A Housing Shortage?
Many say there is a shortage due to builders having to go through alot of red tape and unnecessary regulations at a local level. Why wasn’t this an issue before? Our inventory levels (resale & new builds) have increased in my local Northeast Florida area, but buyers are still not buying as fast as they were a few years ago. I understand if builders build more homes, that could cause prices to come down, so that could help with affordability issues.
There is no way to keep equity high for home owner’s while fixing affordability issues for buyers, at the same time.
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I’m Pam Graham, a Northeast Florida real estate consultant, which includes Jacksonville, Clay & St John’s Counties. I break down the market in layman’s terms so you can make smart decisions—whether you’re buying, selling, or just keeping an eye on what’s happening.
Call/Text 904-910-3516
Email: pam@pamgraham.com
