San Gabriel, California (PRWEB) August 27, 2013
Realtors in a number of areas around the country are reporting that they are facing a shortage of listings for interested buyers. As foreclosure rates drop and the economy starts to stabilize, many commentators are focusing their attention on a new looming crisis that seems in many ways to be the exact opposite of the housing bubble crisis from which the world economy is only now emerging: a housing shortage.
“It isn’t that unusual that we’d be facing a housing shortage right on the heels of the credit crisis and the collapse of the housing bubble,” says Jennifer Ing-aram, owner of Property4Prosperity, a real estate investment firm operating out of Los Angeles, California. “Think about it: new housing development is at a standstill, but people still need places to live. People graduate from school, families grow, and the demand for housing is still there.”
Estimates from the National Association of Realtors coincide with Ing-aram’s predictions; there has been an estimated shortage of up to 1.1 million housing units spanning 2001 to 2013. These figures are based on both new household formation and replacement of condemned properties. Current plans for new developments do not keep up with the projected 2013 demand for 1.4 million units, let alone start chipping away at the existing deficit.
Some sources have speculated that the investor-led recovery will reverse this trend, even to the point of creating a new housing bubble as investors try to take advantage of rising home prices by selling their current rental inventory. Ing-aram says those fears are unfounded. “With returns on rental properties staying so strong, it’s unlikely investors will want to get rid of properties that are making them money in the long-term,” he explains. “Some profit-taking will occur, but this will level out quickly once it becomes apparent that an investor might not be able to replace a property in their portfolio with a new one due to the shortage.”
Property4Prosperity is a California-based company that provides real estate investment opportunities in Memphis, TN and Atlanta, GA to clients around the world, including the United States, New Zealand, Australia, Thailand, Singapore, and more. Find out more at their website, http://www.property4prosperity.com/.
From New Zealand: (09) 889-2872
From Australia: (03) 901-34872
From USA: (626) 818-9705