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Housing preference studies show too little urban housing to meet demand

Supply and demand are off

Based on a comparison of housing preferences, America has too many big-lot housing and not enough small-lot and attached housing. Supply and demand are officially off. Studies show this isn’t a new phenomena, building hasn’t been meeting the trends in some time.

The chart below is from the New Urban Network blog showing a comparison in studies by the National Association of Realtors, University of Utah and Robert Charles Lesser & Co. in comparison with current inventory and existing homes.

What next?

The general rule of supply and demand is (say it with me), when supply is higher than demand, prices decline and when demand is higher than supply, prices rise. Look for prices in the future of wide lot suburban housing to decline in comparison to urban housing with smaller lots.

Is this happening yet in your city?

RESOURCES: Read Part 1 and Part 2 of the full studies, it is well worth the read!

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  1. MH for Movoto

    May 3, 2011 at 11:22 am

    I've suspected this for a while – what with the price of gas ruining everyone's lives – but it's good to see some confirmation of the fact. Builders need to get with the program! The days of suburban boom are long gone.

  2. Rich Cederberg

    May 4, 2011 at 10:21 pm

    Not yet. Here in Albuquerque things have been pretty slow behind the rest of the nation.

  3. Doug Francis

    May 13, 2011 at 7:00 am

    My real estate market in Vienna, VA has seen activity really pick up with our location's proximity to two Metro Stations to Washington, DC. Being able to walk to the stations or at least easily get there is a true "hot button" for many buyers.

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