What Does ‘Low Housing Inventory’ Mean?
June 16, 2022
Buying a house is an exciting event, but many Americans are struggling to find the home of their dreams due to the real estate market’s lack of options. Low inventory is plaguing communities across the country.
In the early months of 2020, many people were sent home to quarantine by their employers due to COVID-19. The pandemic forced many people to work from home, while some lost their jobs altogether. Schools switched to remote learning and many people found themselves working and learning from their home.
This shift in lifestyle left a lot of people reluctant to sell their home because they were unsure of their future. Homeowners who planned to sell their home in 2020 chose to stay put and weather the uncertainty in familiar surroundings. Housing market predictions for 2022 anticipate that the work-from-home trend will stick around as working professionals in cities relocate to quieter areas of the country.
At the same time, builders stopped building. Lumberyards stopped producing building materials because they had no skilled workforce to generate inventory. Building supplies were scarce and their prices astronomical.
Existing homes weren’t being sold and no new homes were being built, thus resulting in more demand and not enough supply.