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Here’s what the US housing supply could look like by 2028

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Although a new study by the Harvard Joint Center for Housing Studies (JCHS) downgraded the number of new US households expected to form over the next decade, homebuilders still have a long way to go to adequately meet tomorrow’s demand.

“Even based on these lower projections, this new projection for 2018-2028 demand would still exceed the rate of housing production as of 2018,” reads the study.

According to the new JCHS projections, the number of US households will grow by 12.2 million between 2018 and 2028, and then 9.6 million between 2028 and 2038.

These projections were downgraded from the JCHS’s 2016 estimates, which called for 13.6 million households between 2015 and 2025 and then 11 million for 2025 through 2035.

New construction levels dropped off sharply following the housing collapse 10 years ago, staying well below historic norms. To date, there have been few, if any, signs that the severe national housing shortage is going to end any time soon.

“Household growth must be accommodated either by the addition of a new housing unit, the absorption of an existing vacant unit, the subdivision of an existing home into multiple housing units, or the conversion of a non-residential structure into a home,” reads the report.

National housing stock grew a modest 0.4 percent year-over-year in November 2018, following nearly four years of annual declines, according to the listing site Zillow. Inventory grew slightly on an annual basis for the two months prior to November.

Aaron Terrazas, Zillow senior economist, called November’s modest gains “a step in the right direction” but was quick to add that “there’s a long march to go” before supply even comes close to adequately meeting demand.

Despite the downgrade, JCHS says that the driving factors behind household growth remain mostly unaltered.

Millennial, minority and single-person households are projected to see “significant” growth over the next 10 to 20 years. In fact, the number of Hispanic households is projected to account for 37 percent of total growth between 2018 and 2028.

Over the next decade, the JCHS predicts that household growth will grow by nearly three million for Millennials between 35 and 44 years old. Single-person households (4.6 million) and married-without children (3.8 million) households will also see significant growth.

Meantime, Millennials, who have been largely absent from the housing market, are beginning to age into their “prime homebuying years.” They will be looking to put down roots and start families in a home that they own instead of rent.

Currently, just over one-third of American adults under 35 years old own a home, but Millennial homebuyers contributed the most to overall homeownership growth in the third quarter of 2018.

And while expert predictions for the US housing market have largely called for an overall cooling as price growth slows nationwide, the lack of new inventory looks likely to remain a thorn in the side of the market in 2019.

But the real problem with dwindling supply may be a shortage of skilled laborers.

Over the last four to five years, many building slowdowns have been caused by a worsening labor shortage. Currently, there are over 270,000 unfilled construction jobs nationwide.

“The housing market could grow faster if there were more workers,” Robert Dietz, National Association of Home Builders chief economist, recently told Livabl.

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New home? Prepare for the unexpected

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(NC) Buying a house, getting married or having your first baby are all major life events that are likely to affect your finances. But whether you’re in the midst of a major life event or not, it’s important to check in on your finances regularly to maintain good financial health.

Your financial health encompasses things like your spending, savings, borrowing and future financial plans. It also means dedicating a set amount of savings for unexpected future events. It can even include optional credit protection insurance, such as TD protection plans, to help cover your debt balances in case of death, a covered critical illness or total disability.

Even though it can be tough to think about the unexpected, life is unpredictable and it’s important to plan for the unexpected. Find more information at td.com.

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Mortgage pitfalls to avoid

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(NC) Throughout life, you may have moments where you’ll make a large purchase or invest in a costly item, like your family home. But whether you’re in the market for your first new property or already have a mortgage, leaving this asset unprotected can be costly.   

Insuring your housing financial debt, as well as debt for other big-ticket items like a new boat for your lakefront cottage or keepsake jewelry like an engagement ring, is a smart investment in your well-being.

To help protect your debt balances like a mortgage, your bank may have optional credit protection insurance products.

“Your home is one of your biggest assets, yet illness can happen at any stage of life. Worrying about your mortgage when the focus should be on health isn’t a situation anyone would wish for,” explains Shirley Malloy, vice president at TD. “Fortunately, we offer mortgage protection to provide coverage for your outstanding balance should you face a covered critical health event.”

Mortgage protection can be purchased whether you’re in the process of applying for a mortgage or already have a home financing solution. But what about protection options for credit card debt?

“Given the unprecedented circumstances of this year, many Canadians are trying to plan for the unexpected to protect themselves and their finances,” says Malloy. “TD balance protection plus is an optional product designed to help you deal with your credit card payment obligations in the event of a covered event, such as loss of employment.”

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Is your internet too slow? It’s probably not you

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(NC) We all know the aggravation of a school lesson that just won’t stop freezing or the family video call that looks more like a photo montage. And, as we adjust to the impact of COVID-19 on our day-to-day, that slow connection can have frustrating consequences.

Working from home and learning remotely, both need fast, stable internet, something not enough Canadians have yet. Even if you have fast devices in your home, if the infrastructure in your area is not optimal, your connection won’t be either.

Right now, cities have the infrastructure needed to ensure access. But rural and remote communities are hugely underserved, with fewer than half having high-speed internet, and fewer than a third of households on reservations have high-speed connections.

Fortunately, change is coming. The Universal Broadband Fund is backing projects across Canada right now to ensure the reliable, high-speed internet connections families need to work, study, access services online, and safely stay in touch with each other.

The fund existed before COVID, but as a response to the pandemic, its timetable has been moved up by four years to a target of 98 per cent of Canadians with high-speed internet access by 2026. With the faster pace, at least 90 per cent of us should be connected by the end of 2021.

The fund is focused on improvements in rural and remote communities across Canada to fix the disconnect between internet access for urban and rural households.  This means more remote work opportunities, better access to remote learning and safer access to healthcare, no matter where you live.

It’s not just for good connections at home, either. The improvements mean much better access to mobile networks on highways between remote communities. The result is better, safer navigation and access to emergency services for your family, even on the road in the middle of nowhere. Mobile projects will be focused on serving Indigenous communities and the roads leading to them.

The shape these improvements will take in your area will depend on where you live. Canada is huge, and its communities are hugely diverse, with diverse needs. Keep an eye out for local projects — they’re a small part of something much bigger.

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