How America Could Soon Be Oversupplied with Homes

For years, we’ve been promised that a “tsunami” of homes would hit the market as Baby Boomers age, move into ⁠senior housing⁠, and pass away. We’ve been waiting…and waiting, but we’re still millions of housing units short. Yet, even without a “⁠silver tsunami⁠,” another trend could push us toward a housing supply glut in the future—new builds. Builder sentiment has dropped to a seven-month low. Homes are sitting empty, huge concessions are being offered, but the buyers are few and far between. Longer absorption periods mean higher holding costs for builders, prompting larger incentives to sell these homes. But, with ⁠mortgage rates⁠ bouncing back up to the mid-six percent range, who wants to buy? Very few Americans, and that’s the problem. Between Baby Boomers slowly trickling inventory into the housing market and builders creating more supply than (financeable) demand, is this the tipping point where we go from an undersupplied to an oversupplied housing market? In this headli...