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New report warns housing supply could outpace homebuyer demand by 2035
Fox News • • business
Key Points:
- The Mortgage Bankers Association reports a major demographic shift in the U.S. housing market, with slower population growth and an aging population expected to reduce demand for new homes over the next decade.
- After years of demand outpacing supply, factors such as lower birth rates and reduced immigration may lead to fewer homebuyers, potentially resulting in an oversupply in some markets.
- Housing market effects will vary regionally: states like Texas, Florida, and Arizona with high construction rates may see softer prices, while parts of the Northeast and Midwest with constrained building could experience continued price appreciation.
- The anticipated influx of Baby Boomer homes is expected to occur gradually, avoiding a sudden market glut but still increasing housing supply over time.
- If homebuilding outpaces demand growth, home price gains may slow, equity growth for homeowners could decelerate, and buyers might benefit from increased housing options.
