A housing shortage could be looming in the not too distant future. While it may seem impossible now, over the last 3 years too few new homes have been built, creating a deficit of over 1.5 million homes, that could climb to a shortage of over 2 million next year. Some 1.6 million homes must be added each year to keep pace with demand from population increase and old house demolition. This should prop up house prices over time.
These trends are heavily reflected in Eugene and Springfield, where new building has slowed to a near stop. In 2009 and 2010, there were probably fewer than 100 new houses built. This means that house prices in Eugene and Springfield should increase, along with the national market.