Owners aren’t financially motivated to sell, builders can’t find skilled workers, and companies are turning available homes into rentals
It’s been often reported that the housing industry is struggling from a lack of available homes. Why is that the case?
MarketWatch examined the reasons behind the supply shortage. Distressed listings are down, and millions of homeowners don’t have enough equity to make it worth selling their properties. Builders are having trouble finding skilled workers, many of whom left for other lines of work in the wake of the recession. Owners who secured low interest rates aren’t motivated to give them up.
Large companies have also found how lucrative it is to be a landlord, so they have snatched up single-family homes and turned them into rental units. This jibes with a large portion of adults who prefer the flexibility of renting instead of buying.