Supply vs Demand

In an ideal condition, new constructions should satisfy not only the demand coming from new households but also should account for the old units exiting the market.

Before the financial crisis in 2008, the new constructions were more than new households in almost all years. However, after the crisis supply fell below the new households which made the market highly imbalanced.

Extra Demand(or Supply) vs Price

When there is an extra demand in the market, the price goes high drastically with a lag.

The Median Household Income was growing continuously in the last decade. At the same time, the unemployment rate decreased to its historically lowest levels. however, with the start of the pandemic, the trends changed and unemployment rates skyrocketed.

More analysis on the Demand side of the market

There is about a 20% increase in the number of US households during the past 18 years.

The majority of the market are owners and a higher proportion of renters are cost-burdened.

While white Americans account for the majority of households in 2019, but a great number of new households over 2014-2019 belong to Hispanics.

US households are becoming older in recent years

While there is a small change in younger age groups, the older households (55+) are growing dramatically in 2014-2019. Also, households in the age group 45-54 have experienced the most decrease.

Midwest has the highest Ownership rate and South has the highest Severely burdened population

The following graph shows the attractiveness of US states for inter-state migration.

It shows the relative change in the number of incoming households to each state in comparison to the growth in the number of households in the state.