Here’s What a Low Housing Inventory Means for Homebuyers

Here’s What a Low Housing Inventory Means for Homebuyers

The real estate market is always changing, and that can be confusing for those who are looking to buy a home. Right now, the housing market is faced with a very low housing inventory. In fact, it is at the lowest point that it has been for several decades, which makes looking for a house more difficult than it would normally be. 

With such a low volume of houses, bidding wars are very common and should be expected. The majority of homes that are currently on the market are receiving several bids, making it difficult for homebuyers to land a home even if they can find one. In line with this, there is a growing trend towards building new homes. In this article, we will explore what a low housing inventory means for potential buyers.

The Built-to-Rent Phenomenon

Given the lack of available homes, developers are building homes at a very fast rate in an attempt to keep up with the demand for housing. This is good news, but it is also a little tricky for homebuyers. In fact, it makes buying a home a bit of a challenge, even with more homes becoming available.

Seeing this need for housing, a lot of developers are actually building homes specifically with the intent of renting them out. Some of the houses that you will see will likely not be available for purchase at all—but that isn’t necessarily a bad thing either.

A good number of Americans are realizing that there can be an opportunity when it comes to these houses. Renting a home is a viable option that can come with some great benefits. These homes are actively being built with this intent, enticing potential buyers to consider renting instead. Renters can enjoy a lower price, a safer investment, and still gain access to a brand-new home.

Turnkey Housing for Purchase

To further entice potential buyers or renters, a lot of property owners are beginning to offer turnkey solutions. This means that the homes are ready to move into on day one, and a lot of these offerings come with additional benefits. Seeing this interest from buyers, more property owners are taking active steps to make their homes perfect for the new owners on that first day. This increases profit for them while giving new buyers what they desire.

Turnkey homes are desirable because of how easy they make it for potential homeowners to jump right in and start living. Previously, it was fairly common for potential buyers to need a plan for immediate changes on move-in day, and while this does still happen, home sellers are making changes to ensure that the new owner doesn’t have to add anything to their transition into a new home. Renovations, replacements, and clear upgrades are being offered to improve homes for sale.

While it is easy to see why these solutions are desirable, there is a large generational push for turnkey homes. Millennials, in particular, are seeking out these homes at high rates. More new homeowners are looking for homes that offer these solutions because they want to start their home owning experience on a good foot.

To accommodate this growing interest, home flipping is becoming incredibly common—and so is new construction. With the high demand for space that is available and ready on day one, property owners are seeing the opportunities available. Making modifications and upgrades means that they can ask for a higher price.

Accessory Dwelling Units

With so many people interested in moving into their own space, there is a growing interest in accessory dwelling units (ADUs), which can pop up easily and offer an immediate space for individuals to move in. These units are known for their small size, making them highly approachable.

A common trait that these units can offer is that they are often used as “accessories” in their own way because multiple units can be found on a single lot. Sometimes this means a home will exist alongside other accessory dwelling units. More commonly, these units can share a property footprint with another home. 

Accessory dwelling units go by many different names, but they are often considered secondary. Adding an ADU onto your property is a wonderful way to get the most out of a lot—but that isn’t all that they offer. These fully functional homes can provide a comfortable living space for appropriately sized households. 

These units are wonderful for smaller families or couples because of their small nature. Since they are generally smaller than a traditional home, they do not offer the same amount of space. However, a lot of homes are also bigger than the household does in a traditional setting, making these a more comfortable fit for homeowners.

ADUs are known to vary significantly in price depending on what is offered. These units can vary in size, build, design, and more. They are commonly considered a viable turnkey solution and can be designed and built more quickly than traditional homes, making them ideal for those who are looking to move sooner rather than later. With their expedited timelines, they are a wonderful way to receive a completely new dwelling in a much shorter time frame. Like traditional dwellings, ADUs can be sold to interested buyers or rented out instead.

Final Thoughts

A low housing inventory might seem like buying a home is more difficult. Rather than giving up, it simply means that buyers need to be more creative

Renting a home or investing in an accessory dwelling unit over purchasing a traditional home can be a wonderful opportunity to upgrade your living space. Instead of worrying that there might not be a good home that you can buy, open your mind to some of the opportunities that are available. 

Every day, companies and property owners are taking active steps to find new ways to accommodate the housing demand, leaving potential buyers with plenty of exciting opportunities for their next big investment.