Evictions, Migration Unlocking More Inventory For Real Estate Investors
What Supply Shortage?
It’s true that it may be harder to find your favorite foods at the grocery store this year. Restaurants may be short on your usual menu picks. You may not even be able to find tires to fit your car. Yet, claiming that there is a shortage of housing or real estate deals to do, just isn’t true. On the housing front many spokespeople have complained about limited inventory. Yet, there are still likely enough vacant homes across America for every homeless person to have two or more. There are millions of properties under used, or that owners would be willing to sell, but which definitely are not listed on the MLS or Zillow or publicly advertised. It’s just about finding the supply, or having the right connections.
More Inventory Is Coming
There is a lot more inventory coming too. Millions, if not tens of millions of workers in America have reportedly quit their jobs this year. That is on top of all of those laid off since the beginning of the pandemic, and those being fired for choosing not to get vaccines and booster shots. One new survey even suggests that 95% of those in old jobs want to quit. Specifically in favor of remote work from home jobs, more meaningful work, and to live more balanced and full lives. For the vast majority, this is going to require moving. Moving to new destinations with more affordable housing, larger properties, and less urban. We’ve already seen this in action, with tens of thousands of people heading into southern states each day. As well as not only a double digit increase in people leaving states like California, but a 45% drop in people moving in. Then we have regular homeowners interested in cashing out at peak values while they can. Plus, landlords finally being able to evict non-performing tenants after moratoriums. Many of whom will never want to lease out their places again, but who know their properties will be more valuable on the resale market if they are empty. While these evictions may still be near 50% below pre-pandemic levels due to backlogs, they have been increasing by double digits every month.
Millions of properties across the US are there for the buying. Millions of US households are eager to move. To leave behind their old places, and find new ones. This is unlocking housing inventory in previously hot areas, and demand for new areas with lots of low priced inventory, lots of activity and value to be traded. Make the most of it while it lasts.