This is a YouTube video titled "4.3M Homes Short‼️🏡" containing a detailed monologue discussing the current housing shortage in the U.S., its historical causes dating back to the 2008 foreclosure crisis, and the impact on home prices and inventory. The speaker explains the decade-long lag in home building and market dynamics affecting buyers and sellers as of mid-2023.
Recent Zillow report shows we are 4.3 million homes short across the country right now. This is why it's tough for buyers to find a home, but also why home prices are holding very strong even though other things in the economy aren't so much. So let's look at this. Well, how did we get here? Go back in 2008 where people were losing their house left and right. There was 3.1 million households that went into foreclosure. That was a straight up turmoil. And there was 3.1 million in foreclosure compared to 4.3 million homes short. So this is just as big of turmoil, if not bigger, but in the other direction where we are significantly short. How did we get here? So after 2008 when three plus million people lost their homes to foreclosure, builders weren't in high demand. They didn't need to go out and build new homes because people didn't want to pay full price to them. They had to cut prices to build houses or new buyers would just buy the half price foreclosed homes. Back then builders pulled back. But those people that lost their homes to foreclosure didn't just go away. They just had a rent for a while. They've entered back into the market now. They've bought up homes. And a lot of people are kind of gridlocked in their 2 and 3% rates from back in the COVID times. So they're not wanting to sell their homes right now into a 6 or 7% rate on the new house. It's a weird conundrum, but builders are sitting significantly behind. About a decade behind. They only built 25% of homes they would normally build in a given decade. So way, way short on inventory because the last 10 years kind of put us in that sellers aren't selling like normal, so we don't have the new resale homes like we normally would. So it's a whole loctite thing. It should start to break loose as soon as interest rates drop and more sellers start putting their homes on the market. But this is a problem that's been a decade in the making. It's not going to be fixed overnight. So home prices are going to hold strong, home values are going to go up, but it should start to slowly get better as time goes on.
