Throughout the industry we are seeing a persistent buzz around the ongoing housing shortage. This is a shortage felt nationally, and felt deeply in the Tahoe region in particular.
For developers and construction, spring is the season to begin building new homes. While in theory, new builds help to raise inventory, and help to level out the availability of homes, this isn’t the case in Tahoe. With limited lots of land available, strict seasonality of building, the increased costs of materials, and the shortage of skilled laborers themselves, we are seeing little to no impact of new builds on our average home price.
With the current housing deficit, according to Inman News, in the US with 1.2 million homes built a year, it would take 10 years to catch up to level out the housing defecit. How does this impact all of us? It means, with a housing defecit, we can expect home prices to remain high (and potentially climb), along with interest rates, and an expected consistent demand that will not wane.