Reply #40: Housing Increasing Faster than Buyers & Families

[unlawflcombatnt]

You're absolutely right about the supply of homes increasing faster than the demand. The government puts U.S. population growth at 1-1.1% per year. That means an increase in population of around 3 million/year. If one assumes an average family size is 4 persons, then the increase in families is about 750,000/year. This is much less than the increase in New Home Construction. In fact, the annualized rate New Home completions was over 2 million per year in June 2006. Below is quote from the U.S. Census Bureau regarding this:

"HOUSING COMPLETIONS
Privately-owned housing completions in June were at a seasonally adjusted annual rate of 2,017,000. This is 6.4 percent (±9.4%)* above the revised May estimate of 1,896,000 and is 2.0 percent (±8.4%)* above the June 2005 rate of 1,977,000.

Single-family housing completions in June were at a rate of 1,738,000; this is 7.5 percent (±9.8%)* above the May figure of 1,616,000. The June rate for units in buildings with five units or more was 255,000.
New Residential Construction data for July 2006 will be released on Wednesday, August 16, 2006, at 8:30 A.M. EDT.

Our Internet site is: http://www.census.gov/newresconst
"

This information can be found at:
http://www.census.gov/indicator/www/newresconst.pdf

From this it appears that the number of New Homes completed is increasing over twice as fast as the increase in the number of families.

unlawflcombatnt

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