Other than food and clothing, shelter is an essential human need that is necessary for the survival of humans. Everyone needs somewhere they call home, a place of peace and tranquility. The impact of housing goes beyond the provision of the shelter alone. It has a significant effect on the health and wellbeing of people. Poor quality housing is prone to cause ailments and injuries, which, in turn, affects the development of children. Additionally, overcrowding and neighborhood environment, which are housing-related factors, have significant effects on physical and mental health. Indeed, studies have shown that living in substandard houses is akin to being uninsured. This paper intends to describe the housing industry in the United States as presented in the Census Bureau.
Description of the Housing Industry in the United States
The housing industry is one of the most vibrant in the United States and the rest of the world. The US housing industry is presently estimated at $36.2 trillion (Housing, n.d). The escalation of home prices over the past few years is driven by strong demand for housing and competition among buyers. According to the Census Bureau, the United States boasts of a wide range of homes, ranging from different sizes, designs, and ages.
The housing industry in the United States encompasses all attributes of homeownership statistics. These statistics include house affordability, housing patterns, housing vacancies, new housing, rental housing, and residential financing. Housing affordability depends on many things, including demographic characteristics and policy change impacts (Housing, n.d). Affordability is a crucial element for consideration when it comes to housing. Families that are burdened by costs will experience difficulties when it comes to other basic needs such as food, health care, and heat.
Individuals who experience difficulties in affording decent housing are more prone to chronic diseases, failure to adhere to prescriptions, and poor health. Over time, housing has continued to become more expensive. Rent costs in the United States have been rising disproportionately as compared to incomes (Housing, n.d). The housing crisis in the US mostly affects low-income earners, renters, ethnic and racial minorities, physically limited individuals, as well as children, and the elderly. Some of the major housing companies in the US include AIR Communities, Ventas, Duke Realty, Mid-American Apartments, Opendoor, Vici Properties, Sun Communities, Invitation Homes, Boston Properties, Medical Properties Trust, and Extra Space Storage.
Housing vis a vis. the Inflation Rate
Any product whose supply is limited is affected by inflation, and that includes housing. Interest rates are important factors that affect the prices of houses. When the interest rates are low, more people will be encouraged to buy houses, resulting in increased demand for homes. If the demand increases but the supply does not change, then the home prices will most definitely rise (Housing, n.d). Inflation is more pronounced in urban areas where there supply of land for housing is limited. For home sellers, inflation is good for their businesses as it will cause increased sales.
Movement in the Inflation Rate
The Excel table and the graph show that the rate of inflation increased during the Great Recession of 2008-2009. It has on a steady decline nonetheless since then up to the year 2019.
Future of the Housing Industry
With several housing projects across the nation, there is hope that the housing industry in the US will expand in the coming months. However, there is no guarantee that this expansion will be translated into rental affordability, particularly among the low-income earners. The coronavirus pandemic will continue to control the homebuyer activities as long as it will exist. Home prices are expected to increase due to low housing inventory in the market. As a result, the demand for houses will increase, causing stiffer competition.
Reference
Housing. (n.d). United States Census Bureau. Web.
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