Limited housing supply continues to plague the housing industry and housing is reportedly even more scarce in rural areas nationwide. According to Redfin, the number of homes for sale in rural areas nationwide, started the year down 44.4% compared to 2020. Additionally, the company reported a 38.4% decrease in homes for sale in suburban areas for the same period in 2020.
Compared to urban areas, the severity of limited homes for sale is much higher in rural and suburban areas. Urban areas saw a 16.9% decrease in homes for sale, a less drastic decline than the 21.5% decline in May and June 2020, according to the report.
"The scarcity of rural and suburban homes for sale is driving the overall housing supply shortage. Many homeowners are staying put, and homes in those neighborhoods are snapped up as soon as they're listed for sale," said Redfin chief economist Daryl Fairweather, according to the report. "Homes in rural and suburban areas remain popular as the pandemic and remote work continue to motivate buyers to prioritize indoor and outdoor space over commute times and urban amenities."
"Buyers looking for homes in urban areas—where supply is down, but not by as much—will have more luck than buyers searching outside the city," Fairweather continued. "Developers are focusing on creating new homes outside city centers, where there's more room for sprawl, but that could mean the shortage in urban areas will worsen over time, with fewer homes being built."
In comparison, the total number of homes for sale dropped to an all-time low of 34% year-over-year.
Click here to learn more about the housing supply deficit.