US deficit of new single-family homes must be addressed as economy improves
Florida housing deficit 112, 000 homes
Annual single-family housing production in 2008 and 2009 fell about one
million units short of the housing that would be needed in a normally
functioning economy, suggesting that builders will have a lot of catching up
to do as the economy improves and household formations return to trend
levels, according to a special study by economists at the National
Association of Home Builders (NAHB).
The report, “Extent of Underbuilding in the Single-Family Housing Market,”
found an excessive amount of single-family building from 2003 through 2005.
But overbuilding largely ended by 2006, and the subsequent downturn was
severe enough to more than offset the annual surpluses. This year is likely
to add to the growing deficit of single-family homes by another one million
units, according to the report.
The study also found that there are now single-family housing deficits in
most of the states. This includes the states that had the hottest markets
during the boom, including Florida with a deficit of 112,600
Posted: 18 November 2010
Source:
National Association of Home Builders
