Why Your Home Can Stand Out in Today’s Real Estate Market

If you’re thinking about selling your home, now is a prime time. Despite an increase in homes available for sale compared to last year, buyer demand remains high, and there simply aren’t enough houses on the market to satisfy it. This demand creates a great opportunity for sellers, making your home likely to shine.

Let’s explore why there’s still a shortage of homes and why this puts sellers in an advantageous position.

What’s Behind the Ongoing Housing Shortage?

Understanding the factors behind the current housing shortage can help you see why your home has a competitive edge in today’s market:

1. Underproduction of Homes

For over a decade, home construction hasn’t kept pace with demand. According to Zillow:

“In 2022, 1.4 million homes were built — at the time, the best year for home construction since the early stages of the Great Recession. However, the number of U.S. families increased by 1.8 million that year, meaning the country did not even build enough to make a place for the new families, let alone begin chipping away at the deficit that has hampered housing affordability for more than a decade.”

This ongoing underproduction has created a significant gap in housing supply, leaving more buyers than available homes.

2. Rising Building Costs

The cost of building materials, along with labor shortages and pandemic-related supply chain disruptions, has driven up the cost of construction. These factors make it more challenging and costly for builders to produce new homes, limiting the overall supply.

3. Regional Imbalances

Some regions are experiencing more housing demand than others, often due to job growth and increased desirability. In high-demand areas, the issuance of new building permits isn’t keeping up, which tightens inventory and drives prices higher.

How Severe Is the Shortage?

Data from Real Estate News indicates the U.S. faces a housing shortfall of about 3.3 million homes, based on expert estimates. But that’s just to meet the current demand. Over the next decade, the U.S. will need an estimated 18 million new homes to support future buyers, including new households, second homes, and replacements for aging properties (see chart below):

a graph of blue squares

This massive shortfall means that even though there are more homes available for sale than last year, it’s still a seller’s market, and this trend is likely to continue for years. That’s why listing your home now can be a smart move.

Key Takeaways for Sellers

If you’re ready to sell, the current housing shortage means your home is likely to attract substantial interest. With more buyers than properties, homes that are listed often receive attention quickly and may sell for competitive prices.

Working with a knowledgeable real estate agent can make a difference. Every market is unique, so an agent with local expertise can help you price your home strategically and create a customized marketing plan that will help your property stand out and attract the right buyers.