The market is short on houses, here's one shocking stat that shows why.
By now it's no secret that the real estate market in Southern Indiana and nationwide is short on housing supply. There just aren't enough houses for sale to satisfy buyer demand.
Plenty of theories have been put forth as to why, including a decade long economic expansion and long-lasting historically low interest rates which have made it easy for people to buy homes. And on the negative side, the worldwide pandemic and global supply chain disruption has certainly caused delays in new construction.
But we came across some data recently that adds another clue about why there aren't enough single family homes available across the country.
This chart tells a surprising and harsh story. Rather than being a recent problem caused by Covid-19 shutdowns, and in spite of the economic success over most of the decade, we see that builders simply didn't (or couldn't) build enough houses during the 2010-2019 time period. In fact there was a 50% reduction in the number of single family homes built compared to the previous decade of home construction (2000-2009).
According to Todd Paxton, a representative of Witten Builders, "A lot of home builders went under after the 2007 & 2008 financial crisis. This left fewer companies available to build new houses. For those of us that did survive, we didn't start building all out again for several years after."
The good news is we have started seeing new construction trend upward to start the decade, with the exception of a steep but brief decline during the height of the Covid-19 shutdowns. The bad news is it may take months, if not years, to catch up to demand.
For their part, Witten Builders has five new subdivision developments they are currently working in to help add more home supply, with more developments planned in the coming years.
"We know the local market needs more houses and Witten Builders is doing all we can to step up and meet the demand for our clients and the community", said Paxton.
As of the time of this writing, there are new construction homes going up in every county in our market (SIRA). Our search shows 122 single family homes in various phases of construction that can be purchased today.
If you have questions about purchasing a new construction home, please reach out to us at 812Living@gmail.com
To find out more about Witten Builders, visit https://wittenbuilders.com
** If you would Southern Indiana community news and happenings delivered to your inbox, be sure to click 'subscribe' above. **
> 812 Living Group - More than just a real estate company, a community partner <