Diminished Domiciles

While inventory of homes is low, commonly used measures such as months of inventory or number of units for sale, severely underestimate the shortage. The number of units for sale divided by the number of households has been flat at 1.7% since early 2013, its lowest level ever! During the housing boom it was as high as 3.5%. Worse, 1.7% is an underestimate as household growth is substantially below trend.