A recent Goldman Sachs forecast projects that national house prices could increase a further 16% by the end of 2022, driven by one of the longest housing shortages to ever affect the U.S. economy.
With supply shortages preventing productivity for homebuilders, a tight market will drive up prices for the foreseeable future as demand remains steady for potential buyers.
“Earlier this year, we argued that constrained supply and sustainably robust demand would keep the US housing market very tight, pushing up home prices and rents sharply. The boom since then has surpassed even our lofty expectations, with home prices now up 20% over the last year.”
“The supply-demand picture that has been the basis for our call for a multi-year boom in home prices remains intact. Housing inventories remain historically tight, while homes remain relatively affordable despite the recent price increases, and surveys of home buying intentions remain at healthy levels. Our model now projects that home prices will grow a further 16% by the end of 2022.”
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