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Zillow – Housing Shortage is the Primary Reason for the Affordability Crisis

Zillow’s recent report highlights the severe housing affordability crisis caused by high home prices and mortgage rates. This housing shortage, while challenging for buyers, continues to present opportunities for investors and CCM. With home prices outpacing incomes and inventory at historic lows, strategic investments can yield significant returns. Interestingly, Minneapolis, MN (our home market) is listed in the report as one of the markets with a more severe housing shortage.

Key points:

  • Limited new construction and homeowners staying put have created a supply-demand imbalance, driving up property values.
  • While high-cost markets like the West Coast are tough for buyers, the Midwest and South offer better affordability. Investors should focus on these areas for potential high returns.

Current market conditions offer unique opportunities for strategic investors. For detailed insights, check out the Zillow report.

Reference: Divounguy, O. (2024, June 18). Affordability crisis: Housing Shortage Worsened Despite Pandemic Construction Boom. Zillow Research.

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