The National Association of Home Builders says it’s a good thing that the housing market has finally stabilized.
The trade group said in a recent report that there’s been a “huge increase in the number of new homes constructed in the past few years.”
And while that’s helped create more demand, it also created a glut of housing, said the group’s president, Mark Zandi.
He noted that while home construction was booming in some cities, “there was a glut.”
In some cases, the supply was so low that builders didn’t even have enough units available to build.
“That was the real problem,” Zandi said.
With a shortage of new housing construction and demand outpacing supply, the housing stock was actually in a “severely downward spiral,” Zankis said.
He predicted that by 2040, the number would be down to zero.
While housing growth is still outpacing population growth, Zanki said that he thinks the housing shortage is due to the recession and lack of jobs.
That said, Zandi believes that a number of factors are at work, including “a combination of demographics, climate, and the aging population.”
For example, there are a lot more elderly people, and they tend to have lower incomes, he said.
And the demographics are changing.
“When I look at population in the United States, it’s shrinking, and there are more and more older people,” he said, citing a 2015 Pew Research Center report that found that the share of older people in the U.S. had reached its highest level since 1980.
So the population is aging, Zanksi said, and “there is a greater need for housing.”
There’s also the fact that there is a lot of demand for housing, Zankingis said, noting that the demand is higher than it has ever been in the history of the housing boom.
“We’ve got to have a demand response here,” he added.
The housing shortage, Zankedis said has created “unprecedented pressure on local governments and the federal government to invest in housing and other resources.”
The federal government is helping, with a $1.3 billion loan program, which has already helped build thousands of new units.
But Zankingsaid that there are limits to how much federal government can do.
The housing stimulus, for example, was “overall about making money,” Zanks said, adding that “we have to figure out what the federal budget is going to look like in the next decade.”
Zanki also pointed out that the U,S.
population is expected to grow by about 3 million people by 2060, and that many people have other ways of supporting themselves that may not be as appealing.
For instance, Zanski said, there will be “a new housing market in the city of Dallas, Texas, which is in the suburbs of Dallas.”
That’s the largest metropolitan area in the country, and one that will need to have more housing to support its population.
In the meantime, he’s optimistic about the housing markets.
“I’m really optimistic that the stock market is going back to a level where it can provide a lot for the economy,” he told Fortune.
But even Zankins optimistic outlook may come to a halt if there is another recession.
A report released last week by the U: The Facts , a nonprofit think tank, projected that housing will shrink by 5 million units in 2040.
That number would have been lower had the recession not occurred.
More than half of the country will be without homes in 2023, and Zankinos forecast that by the end of the decade, only about 1 in 3 Americans will have a home.