In an article at Forbes, real estate experts shared some of their insight on the outlook of the housing market for the near future and beyond.
One expert, Jeremy Bronfman of Lincoln Avenue Capital shares that collaboration is needed across all sectors in order for the housing market to grow.
“Rising construction costs, material shortages and labor issues have been greatly intensified by the pandemic and are significantly impacting the affordable housing industry,” Bronfman said. “By working with our industry peers and public sector partners, we can address these issues and move quickly to construct quality, affordable homes that are urgently needed. We are proudly engaged in this effort.”
Another expert, Joseph Edgar of property management software TenantCloud, points out that the decreased supply won’t last long term.
“What we see now is that the supply is lower than the demand for new homes in the U.S. housing market,” Edgar said. “One of the reasons for this is the pandemic-related increase in prices for construction/building materials which is slowing down construction growth. Fortunately, this won’t affect the market in the long term as prices are predicted to go down in a few years.”
Lastly, Ron Costa of real estate company The Eighty Two Group, mentions that the housing market will continue to surge.
“The real estate market should continue to surge in the foreseeable future due to a plethora of reasons,” Costa said. “Housing construction still has not caught up with demand. Desirable neighborhoods do not have enough space to build more housing due to government regulations and NIMBYism. The FED and the government are continuing to keep interest rates low and extending eviction moratorium to avoid catastrophe.”