Is Chicago Desperate For new Construction?

From Chicago Agent Magazine

Eighty percent of U.S. metro areas are lacking in single-family home construction, and few areas are in greater need than Chicagoland, according to a new analysis from the National Association of Realtors.

Comparing home construction to job gains from 2013 through 2015, NAR found that among the 171 metro areas it studied, Chicagoland’s housing need is the fifth-worst in the nation, with 94,457 permits required to maintain the historical equilibrium of 1.6 jobs to every single-family permit.

Lawrence Yun, NAR’s chief economist, says this is a problem that has persisted since the downturn.

“Inadequate single-family home construction since the Great Recession has had a detrimental impact on the housing market by accelerating price growth and making it very difficult for prospective buyers to find an affordable home – especially young adults,” Yun said. “Without the expected pick-up in building as job gains rose in recent years, new and existing inventory has shrunk, prices have shot up and affordability has eroded, despite mortgage rates at or near historic lows.”

Here is NAR’s full top 10 list:

  1. New York (218,541 permits required)
  2. Dallas (132,482 permits required)
  3. San Francisco (127,412 permits required)
  4. Miami (118,937 permits required)
  5. Chicago (94,457 permits required)
  6. Atlanta (93,627 permits required)
  7. Seattle (73,135 permits required)
  8. San Jose (69,042 permits required)
  9. Denver (67,403 permits required)
  10. San Diego (55,825 permits required)

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