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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 78 July 2024 J O U R N A L shortage continues to grow to an approx- imate 4.5-million-unit deficit, up from 4.3 million units in 2023, according to a recent Zillow research. The Bureau of Labor Statistics (BLS) has reported that total nonfarm payroll employment increased by 272,000 in May 2024, and the unemployment rate changed little at 4%, as employment continued to trend upward in several in- dustries, led by healthcare; government; leisure and hospitality; and professional, scientific, and technical services. The critical need for skilled construction workers to boost housing production, as the BLS found that employment showed little or no change over the month in oth- er major industries, including construc- tion and manufacturing. The U.S. Census Bureau reported its April 2024 construction statistics, which found that construction spending during April 2024 was estimated at a seasonally adjusted annual rate of $2,099.0 billion, 0.1% below the revised March 2024 esti- mate of $2,101.5 billion. The April figure is 10% above the April 2023 estimate of $1,907.8 billion. During the first four months of 2024, construction spending amounted to $635.5 billion, roughly 10.9% above the $573 billion for the same period in 2023. HIDDEN COSTS OF HOMEOWNERSHIP CONTINUE TO SOAR F or many, homeownership is a pillar of the American Dream and an essential way for many people to accumulate wealth, but ongoing costs go much beyond the initial purchase price— according to Bankrate's latest Hidden Costs of Homeownership Study. Median home prices have risen above $400,000 nationwide, and the average annual cost of owning and maintaining a single-family home in the United States is now 26% higher than it was four years ago. Bankrate compiled the typical costs of property taxes, homeowners' insur- ance, and home maintenance, which was estimated to be 2% of a home's value per year. Energy, internet, and cable costs, as well as inflation adjustments for property taxes, energy, internet, and cable bills, and homeowners' insurance rates, were also factored into the study. In all 50 U.S. states, the average sin- gle-family home, priced at $436,291—ac- cording to Redfin—costs $18,118 each year. This adds $1,510 per month to a mortgage payment throughout the country. In 2020, the same expenses total $14,428 per year for a typical single-family home, which equates to $1,202 monthly. Homeownership and Maintenance Costs Up Nearly 30% Nationally Everything has become more expen- sive in the last four years. Home values have risen by 40% since the beginning of the pandemic. The National Association of Realtors reported that the median price of an existing home in March 2020 was $280,700. By March 2024, the figure had risen to $393,500. Consumers are also dealing with the aftermath of pandemic-related inflation. Overall, prices are significantly higher than in 2020, and U.S. dollars do not go as far as they did a few years ago. According to the U.S. Bureau of Labor Statistics, cumulative inflation reached 21% between March 2020 and March 2024. Insurance prices are another bur- den for homeowners. Increased home values, increased construction expenses, and disasters have all contributed to an increase in annual insurance premiums.