Is this why there are so few homes for sale?
One of the puzzles of the housing market has been why there are so few houses available for sale. Many reasons have been proffered: buyers reluctant to trade up, impact of student loan payments on the ability to obtain a mortgage, boomers holding off selling while they recover from the Great Recession, low levels of new home construction, etc.
A new report Many starter-SFH homes have shifted to rentals from Fannie Mae reveals another reason: that nationally the stock of owner-occupied starter homes declined by more than 1 million units between 2005 (roughly the peak of the housing boom) and 2013 (the most recent year for which data are available), whereas the inventory of renter-occupied starter homes rose by approximately 2 million units during the same period (see chart). Starter homes – defined as SFHs with less than 2,000 sf of floor area – accounted for two-thirds of the growth in all single-family detached rentals during the period. (more…)
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