With an abundance of housing inventory in most markets and foreclosures common across the country, it seems unfathomable to envision a housing shortage. However, some trends are taking shape that foretell just such a possibility in certain parts of the United States.

According to a recent article reported on MSN Money, economists are pointing at the convergence of two trends - a depressed level of home construction (new home starts in 2009 were one-third of the historical norm of 1.6 million), and the inevitable emergence of a generation that will soon be entering the work force and forming households - that could cause a shortage.

Overbuilt markets such as south Florida, Las Vegas and Phoenix may not be in danger of such a squeeze anytime soon. But the article identifies Western states such as Oregon, New Mexico and Utah, where housing supply and demand is considered to be in balance, as locations that could be under supplied as early as mid-2012.

The Group Real Estate Insider. Believe it or not: Housing shortage could be on the Horizon. September. Volume 34, No. 9