flexiblefullpage - default
Currently Reading

Builders Pause New Projects as Home Sales Slow, but Experts Say the Time to Build Is Now

New-Construction Projects

Builders Pause New Projects as Home Sales Slow, but Experts Say the Time to Build Is Now

Regional builders are holding off on new construction projects as buyer demand dips, but experts worry that delayed development will add to a decades-old housing shortage 


July 25, 2022
Rooftops of new residential buildings
Image: Stock.adobe.com

A decades-old housing shortage has left the U.S. with too few homes to satisfy the booming housing demand that became commonplace throughout the COVID-19 pandemic, but as builders ramp up construction, buyers are pulling back. A supply and demand imbalance has flipped on its head, and as mortgage rates climb higher and home prices break new records, no amount of new inventory seems to be enough to keep buyers in the game. 

Rather than forging ahead with new homes that won’t sell, many developers are slowing their pace of production and dropping their prices on completed units, but a slowdown in home building could prolong an existing shortage years into the future, The New York Times reports.

“This is going to have a significant impact on future supply,” said Randall Lewis, a principal at the family-owned Lewis Group of Companies, a developer of master planned communities in California and Nevada. Mr. Lewis’s company takes raw land and over the course of decades adds basic infrastructure like sewers, streets and traffic signals. When companies like his pull back, the number of lots homebuilders can use in the future declines.

“We are now saying we’re going to look project by project and say which ones are we are going to go ahead on and which we are going to take a pause on,” he said. “As a developer, the question is, how much money do you want to put in the dirt when you don’t know what the future is going to hold?”

Read more

Related Stories

Community Development

These St. Louis Lawyers Created a Replicable Model for Neighborhood Renewal

The SmithNMTC corporation is revitalizing neighborhoods all across the U.S. by using a federal tax credits program to finance affordable housing projects

New-Construction Projects

In an Effort to Boost Inventory, Builders Are Stalled by Rising Construction Costs

Fixing the affordability crisis means building more homes, but rising construction costs pose a lingering challenge

Single-Family Homes

New Single-Family Starts Surged in 2021

2021 single-family housing starts expanded at the fastest pace in close to a decade with the highest total share since the Great Recession

Advertisement
boombox1 -
Advertisement
native1 - default

More in Category




Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.