Following population trends, the U.S. should be adding more than a million households each year for the next few years, economists note in Freddie Mac’s April Outlook report. But higher housing costs and a delay in younger adults’ buying are prompting an uptick in shared living arrangements, multigenerational households, and delayed household formation.
A shortage of homes for sale continues to press on many markets across the country. The number of single-family homes available for sale in the U.S. in February was 1.41 million units, less than half of the inventory peak in 2007, according to data from the National Association of REALTORS®.
Researchers predict that home sales will rise from 6.12 million in 2017 to 6.3 million in 2018, and to 6.44 million in 2019. They are forecasting that new home sales will be a significant driver in home sales over the next few months.
Source: “Nothing Draws a Crowd Like a Crowd: The Outlook for Home Sales,” Freddie Mac Outlook (April 2018)