Housing Shortages Impact U.S. Cities: Bank of America Study

Bank of America, found out that in the United States, people wanting to buy homes are having a hard time because there aren't enough houses for sale. This problem is worse in some places than others.

They studied this and found that four cities are struggling with this issue. Three of them are in Texas: San Antonio, Dallas, and Houston. The fourth city is Orlando in Florida.

The reason these cities are having such a tough time is because a lot of people are moving there, but there aren't enough houses for everyone. So, these cities are like the center of the problem. Many people are moving in, jobs are growing, but there aren't enough houses.

In June 2023, Dallas and Orlando had lots of new jobs being created, more than in the whole country. But this is causing a problem because there aren't enough houses for all the new people. In 2022, there were only a few houses available for each person in these cities, even fewer than the national average.

Because of this, the prices of houses are going up fast in these cities. For example, in Orlando, the prices of houses have gone up a lot in just a few years.

City Responses to Housing Shortages

The cities are trying to fix this issue. They are permitting to build more houses, and it's expected that in 2024, a lot of new apartments will be finished.

But the big question is whether they will be able to build enough houses to keep up with all the people moving there. If they can't, then the demand for houses will stay high.

On the other hand, there are some cities where there are too many houses. This is because not many people are moving there or there are too many new houses being built. Cities like St. Louis and Detroit have this problem. Miami has too many houses too because they've built too much.

All of these things can affect the prices of houses. If there are too few houses, prices go up. If there are too many houses, prices might go down. This also affects the local housing market.

This research was done by Bank of America, who looked at where people are moving and how many houses are available.

This problem affects the whole country. There aren't enough houses for sale or rent. This lack of houses is keeping prices high even though getting a mortgage is expensive.

Even when more houses are usually sold in the spring, this shortage of houses is still a big problem. This has caused house prices to go up a lot recently and is pushing the building of new houses.

Summary

In short, Bank of America's research shows that there aren't enough houses in the US. Some cities like San Antonio, Dallas, Orlando, and Houston are really struggling because lots of people are moving there, but there aren't enough houses. Other cities have too many houses. This affects the prices of houses and the housing market's future depends on whether they can build enough houses to meet the demand.