The Current Housing Shortage Has a Silver Lining: Want to Know What It Is?

it’s no secret that the United States housing shortage is now quite the cry for buyers — for good reason. People want to buy. You’ve seen it all recently in this growing economy. It’s basically how the real estate market has been burgeoning for quite a while. There’s now a big problem, though, what with natural disasters, a new urban crisis, and new regulatory and tax questions. In a nutshell….

Less and Less Homeowners Are Looking to Sell Their Homes: the Essence of the Housing Shortage

We’re at a stage where millennials are looking to break out. Gone are the apartments. They’re moving out of mom and dad’s. The problem is the inventory — there are fewer and fewer houses on the market. And the worst of it is that could very well settle the market and bring it on a downswing. You and I both know we don’t want that.

As the headline mentions, though: there is a silver lining. And a beautiful one. If someone could figure out how to pull that silver lining from the sky, of course!

Believe it or not, but there is something great about having a housing shortage — it’s called opportunity. And it falls right on the laps of developers. Hard thing to have on laps, but the truth is no longer will the investment ever be on a billion-dollar tech startup. That’s old hat.

Nowadays the economy looks to develop the mid-priced single-family home that a buyer can actually afford. We just need someone to develop them!

You could be looking, possibly, at urban row housing. Transit-oriented development. Remember: millennials these days often take the bus or train. Or even bike to work. Certain starter homes could break big. Even affordable rental units could be the exact push this market needs as long as developers can find the sweet spot:

It’s All About the Right Price…. The Right Land Costs…. The Right Location…. And the Right Amenities

We know it’s a gamble. Above all else, developers take that gamble big time. They’re banking on whether or not developments hit home, populating with people who would be proud to be called a first-time home buyer. That’s like a magical phrase in this real estate industry.

And know this: the higher-end market still looks good. Nothing wrong there. But this market is like a very big house. The foundation, for the most part, will be the middle ground. When there’s nothing left to work with, foundation weakens!

The Real Good News Is You Better Believe Someone Out There Is Checking the Writing on the Wall

It’s a goldmine. We’re talking boku bucks. People want to make some real coin? Give those prospective home buyers something to buy! And the money will just roll in along with that nice silver lining.