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4 Factors Affecting Housing Supply

May 10, 2023

 
If you’ve been preparing to buy a home in the last couple of years, then you’re probably aware of the serious housing inventory shortage you may have to contend with.
 
Low housing supply has led to rising home prices, buyer competition and, in many markets, bidding wars.
 
But what caused the shortage in the first place? And why hasn’t it changed much in recent years? Here’s what you need to know.
 
  1. Slow Housing Construction: Builders have reduced their work since the housing crash in 2008. There have also been issues with supply chains, the rising cost of lumber and other materials, and contractor shortages. All these elements have made it harder to build new homes to increase supply.
  2. Homeowners Staying Put: Right now, mortgage rates are higher than they were at the height of the pandemic. Finding a new home doesn't always make sense for homeowners with the 2% or 3% rates seen a few years ago. Few are choosing to sell because of interest rates, but many older homeowners are choosing to age in place, too — which keeps the number of existing homes on the market low.
  3. High Demand: Homebuying demand jumped during the pandemic. And while it’s slowed a bit due to higher mortgage rates, demand is still outpacing supply. Much of this demand comes from millennials, who are now at their prime homebuying age.
  4. Institutional Investors: Big investors are snapping up properties, too, and they often hope to rent them out, which takes them off the market for sale. At one point last year, they accounted for almost 7% of all home sales.
Despite these headwinds, finding a home that works for you is still possible if you have the right help. Are you ready to buy? Reach out today.

Blake O'Shaughnessy

Blake O'Shaughnessy

Real Estate Professional

About The Author

Blake O’Shaughnessy skillfully navigates the nuances of Denver’s competitive real estate market. His savvy approach to every transaction, combined with his professional attitude toward clients and brokers, has firmly established him as a Real Estate Professional who is trustworthy and always one step ahead. A Denver native, Blake’s robust familiarity with local neighborhoods translates to an insider’s knowledge of what is coming up, a perk he shares with clients to ensure they locate their ideal home in an ideal location. He stays abreast of local trends and knows which markets are hot, and which neighborhoods are up and coming.

In work and in life, Blake adheres to the philosophy that honesty and good communication are paramount to achieving the best possible outcome. He works hard to create friendly and healthy relationships with other agents and clients. As Blake explains, “We are all in this together and the competitive nature of our business should not create hostile competition or animosity. I enjoy the camaraderie and the notion that the common goal is what drives agents on both sides of every deal.”

Blake’s decade-long career in the oil and gas industry paved the way for a solid understanding and appreciation for the local real estate climate and how to successfully take care of clients’ wants and needs in a highly competitive market. Whether on the buyer or seller side, Blake approaches every deal with a single philosophy: to be mindful in both his personal and professional life and let personal integrity guide every action. To that end, he measures success in terms of what he helps each client achieve and will never encourage someone to purchase a home that is not a good fit just to make a sale.

Blake’s success speaks for itself. He has been recognized as a Top 1% Real Estate Professionals in the U.S. by Real Trends and the Wall Street Journal in 2020 and 2021 and closed a record sale in Denver Country Club in 2021. He specializes in Denver’s upscale urban areas, including Denver Country Club, Polo Club, Hilltop, Crestmoor, Washington Park, Platte Park, 7th Avenue Historic District, and Cherry Creek. A resident of Denver Country Club, Blake has an abiding love of the area’s Old-World charm. He has a deep appreciation for creative design elements that are part and parcel of the developing world and is quick to share this enthusiasm with his clients.

Married with three boys and a girl, one Old English Sheep dog, Blake enjoys golf, skiing, traveling, cooking, and exploring the beauty of Colorado with his family.

 

Work With Blake

Experience the pinnacle of Denver real estate with Blake O'Shaughnessy. With an insider's knowledge of local neighborhoods and a decade-long career in the industry, Blake skillfully navigates the competitive market to ensure you find your dream home in the ideal location.