Despite Construction Slump, Builders Are Capitalizing On Favorable Conditions
After a few years of solid growth in single-family home construction, housing production has entered a bit of a recent slowdown.
MarketWatch reports that a shortage of skilled labor and buildable lots, along with higher costs for lumber and other materials, has sidetracked a housing market that has seen steadily rising construction rates.
But, builders are still thriving. People can afford homes: The economy is expanding, wages are rising, mortgages are obtainable, and household wealth is where it was a decade ago.
A pair of reports this week might tamp down unease about the health of the housing market. Sales of previously owned homes are expected to remain near a 10-year high, although they might taper off in May. The biggest problem: Not enough people actually want to sell their homes even with demand near the highest level in years.