Making the Most of a Housing Shortage

by Allan Wulff, MBA. Ph.D. 02/14/2021

Image by Sandro Porto from Pixabay

On the basic level of supply and demand, a housing shortage leads to higher home prices. But let's look beyond the obvious at a few other considerations a homeowner might want to make in response to a housing shortage, as well as a few tips for the prospective homebuyer. 

More Housing, Same Space

Wondering what the best investment you can make to raise the property value is? Creating extra housing within the existing footprint of the property is one of the best ways to go. Creating an attic or basement apartment in the existing home is one way to go, so is building an entirely new structure to house a granny flat. You could look into garage conversions, see if there are changes that could be made to any existing outbuildings, or break ground and start from scratch. In response to the housing shortage there are many laws being passed to make it easier for homeowners to receive approval for adding additional residences to their property, including simplifying licensing procedures and even overriding some HOAs, including one that just went into effect statewide in California. 

A Great Time to Sell the As-Is Home

A housing shortage doesn't just drive prices up, it can cause buyers to quickly snap up houses with cosmetic flaws that would normally linger on the market. If the thought of doing needed house painting or landscaping feels like it defeats the purpose of selling the home, then now might be the right time to put your home on the market. Additionally, if you'd already been planning to sell your home, but have continually been adding to a never ending list of projects to complete before selling, then now is the time to list, while the market is hot, even if you're DIY home improvements are still a far cry from perfect. 

Getting Into the Rental Market Is a Strong Income Source

If you're planning to purchase and move to a new home, you may want to re-think selling your current one. Although it may be a strong market for selling a home, the rental market could be robust. If you can afford to keep your current home, you may have an ideal income-producing investment on your hands. 

3 Tips for the Homebuyer During a Housing Shortage

If you're looking to buy a home during a housing shortage, don't despair of the shortage. You'll have luck, just expect it to take a bit longer and follow this advice:

  • Work with a top-notch agent. To find the available houses you'll need to work with the agent who knows where to look.
  • Choose where you're most willing to compromise on your 'dream home' in advance.
  • Be ready to move quickly. Have all your paperwork and finances in order, and be ready to go when you find the right place.
    • Housing
    Buyer Tips
    Seller Tips
    About the Author
    Author

    Allan Wulff, MBA. Ph.D.

    Hello and thank you for visiting! Selling or buying real estate is very serious business! I provide extraordinary results! Prior to real estate I was President/CEO of a number of area technology companies, Vice-Chairman of the INOVA Hospital Association and have been a long time member of the Association for Corporate Growth. With a broker’s training and experience, you get more than just a realtor agent. My negotiating skills and astute problem solving capabilities, honed by executive experience, have proved extremely effective for my clients in achieving their dreams and real estate goals in this current complex and fast paced market. As a long time Northern Virginia resident my experience will benefit you whether you are buying a home or selling a home or are a returning client checking out the many homeowner resources my associates and I offer. Buying a home? I look forward to helping you select the home of your dreams by taking time to listen to your needs and desires. Selling a home? My real estate expertise and many effective marketing programs will give you the exposure and edge you need to sell your home quickly for top dollar. Testimonials. I appreciate the opportunity to continue to serve you and hope you take advantage of the valuable resources I provide. Come back to visit often! I consider this community an excellent place to reside and would love to share with you my enthusiasm for the many neighborhoods in the area. I pride myself on providing unparalleled service and look forward to developing a long-term relationship with you. Please feel free to contact me if you would like to discuss how I can best assist you with your real estate goals. Sincerely, Allan Wulff