NC State Economist Dr. Mike Walden – “Are Homeowners Staying Put?”

 

Mary:  I’m Mary Walden, with economist MW, welcoming you to the economic perspective.   Today’s program asks if homeowners are staying put.  Mike, the housing market has recovered from its dramatic plunge during the Great Recession.  But it appears to have recovered in a very unique way.  Inventories of homes for sale are still well below traditional levels.  What’s causing this?

 

Mike:  Summary Answer

  1. one reason is that construction rates are below normal – many construction

firms didn’t survive the recession; many Millennials are still preferring

to rent; and more stringent building regulations make it more difficult

to build

  1. but another factor is that existing homeowners are not putting their homes

up for sale as in the past

  1. average number of years a homeowner stays in their home before selling has

almost doubled since 2000

  1. one reason – fewer new homes to move to
  2. also, empty nester baby boomers aren’t as ready to downsize as in the past
  3. last, there’s still a hangover from the Great Recession motivating some people

from shying away from the risk of home-owning

  1. I’m MW
  2. Mary:  And I’m Mary Walden for N C State Extension

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