New Jersey is experiencing a loss in the number of available homes, which is driving up the cost of home prices. According to a recent article on nj.com, the number of homes dropped between 15-20 percent in the past year.
Why Is the Number of Available Homes Decreasing?
- Labor shortages: During the last five years, the housing industry has experienced shortages in skilled labor. There are currently 154,000 open available construction jobs in the US, down from last summer, but it still represents an issue. One of the reasons for the shortages is that many projects are being placed on hold due to over saturated markets. Another issue is that the construction industry relies heavily on immigrant labor, which has come under fire under the Trump administration. Undocumented workers are turning down projects, and there aren’t enough people willing to fill those positions.
- Unaffordable housing: Mortgage rates increased this year, causing new mortgage loans to go down 36 percent from a year ago, according the Mortgage Bankers Association. Housing prices and interest rates are so high, people simply cannot afford them. This causes a strain on home builders and families who want to own a house, but cannot. They are settling to rent houses and live in apartments instead.
During the process of building, buying, and financing a home, many things can go wrong. Predatory lending practices can leave homeowners illegally indebted, and construction and zoning disputes are complicated to figure out.
New Jersey real estate lawyers at Garland & Mason, LLC have experience settling complex real estate cases in construction disputes, real estate transactions, lien payments, and landlord and tenant laws.