An optimistic report released by the Census Bureau carries the marriage that the shortage of housing supply in the United States is close to coming to an end.
On June 21, the department confirmed that there is an increase of 8% in building permits since a year ago. Housing starts also went up to more than 20%. This led experts to believe that the gap in the country’s supply and demand for housing is slowly coming to a close.
There is an annual increase in permits which is helping inventory to inch closer to the demand. The country’s seasonally adjusted annualized rate (SAAR) is currently at 1.29 million is a strong indication that the supply will soon offset the shortage in housing.
While reports are very promising, builders remain to be under pressure as millennials are starting to enter the household formation age.