Freddie Mac last week estimates that our national housing market needs to build and complete 1.6 million new single-family homes a year to keep up with demand. The last time our country built this many new homes was in 2006. Over the last 4 years home builders have built on average 1.163 million new homes a year or about 440k too few new homes. And over the last 10 years home builders have competed on average 1.011 million new homes a year.
Brian Wesbury from First Trust Portfolios wrote yesterday that he believes that home builders need to build 1.8 million new homes a year for the next several years to catch up with demand.This is the primary reason why home prices have increased so substantially in Denver and across the country. We have a HUGE supply problem as we need more homes to sell. We don't have a demand problem.
I read last week Democratic Presidential Nominee Joe Biden wants to create a first time home buyer tax credit again like we had in 2008 and 2010. That tax credit was sorely needed back then. But, today the last thing our real estate market needs is MORE DEMAND.
To make housing more affordable we need to build millions of more homes across our country. This means less governmental regulation and red tape and a HUGE investment into Trade Schools and community colleges to encourage and train more people to enter construction as a career.