Throughout 2022, rising interest rates created affordability concerns for home builders and buyers, prolonging construction time and deteriorating sales volume even during traditionally strong seasons for homebuying. While elevated interest rates created new challenges within the new-home market, they also drove up demand for newly constructed homes as existing home inventory fell sharply, Shinn Builder Partnerships reports.
Despite affordability issues, 2022 posted the best profit performance since 1994, when the Shinn Group first started tracking profitability performance.
Average profit for The Shinn Group 2022 Comparative Financial and Operations Analysis is 14.59 percent. Dollar sales volume from 2021 to 2022 decreased less than 0.3 percent. However, unit sales volume decreased by 14.6 percent with the average price of homes sold showing an increase of 14 percent over 2021.
Advertisement
Related Stories
Market Data + Trends
Data Show New-Home Construction Starts Slowed at the End of 2023
Despite falling mortgage rates and a continuing shortage of housing inventory, the annual pace of new-home construction slowed in December
Housing Markets
Top 10 Metros for New Homes in 2024
Punta Gorda, Fla., and Myrtle Beach, S.C., top the list of places where new-home construction is booming
New-Construction Projects
US Housing Starts See Unexpected Surge in November
Census Bureau data show new-home construction was up 14.8% in November, suggesting the housing crunch may be easing
