A natural response to a larger population is often increased housing choices. A common problem that has arisen in the past year is the lack of new building projects that have been started in places hardest hit by the housing crisis of 2009. When the population grows at a rate more rapid than the homes available, demand exceeds supply. Unfortunately, a side effect of housing shortages is that people begin to have more people living under one roof, demonstrating population decreases in terms of housing needs. In the case of Arizona homebuyers, the lack of new projects started in the housing markets and the decrease in inventory on the market, more and more people are finding fewer options for purchasing a new home. Another negative effect has been seen across the country, including Arizona, is how towns that had begun to see previous areas of new housing construction virtually abandoned as construction halts.
In Arizona, the population increases have seen a rate of over 2% from 2010 to 2012. With an increase of 145,222 people in the past two years in Arizona, there still a distinct difference in the number of homes being started as that rate has only increased at a rate of 0.9% in the same time period. This equates to only 25,111 of new builds trying to get caught up to a 2.5% overall increase. In the United States, there has been an overall increase of 4.6 million people, which is an increase of 1.5% overall but in terms of housing have only increased 0.5%. This translates to a growth rate of population being 2.9% greater than the increase in housing. It is because of these housing shortages that the housing markets in Arizona and across the country have seen such a strong recovery.
As we move into a time period where mortgage rates may begin to rise, it is a great time to consider placing a home on the market. With the decrease in supply and the increase in demand, taking advantage of the lower availability can help sellers maximize the amount of return on their investment before the inventory increases in response to the current shortage.