More than a million additional homes need to enter the U.S. housing market to better meet demand and pull back the upward pressure on housing prices, according to an industry economist. National Association of Realtors Chief Economist Lawrence Yun told FOX Business that the current inventory of existing homes sits at 1.1 million, down from the 1.8 million reported during the same month in pre-COVID 2019.
However, not all hope is lost. According to Yun, life-changing events – such as a new child in the family, death, divorce and job switches – "should steadily boost inventory over time, especially if mortgage rates were to retreat somewhat." Increased home builder activity as well as the conversion of disused commercial spaces like empty office buildings into residential units will eventually help, too, but these efforts take time, Yun said.