flexiblefullpage - default
Currently Reading

A Lack of Housing Inventory Spells Opportunity for Home Builders

billboard - default

A Lack of Housing Inventory Spells Opportunity for Home Builders

Home builders are exceeding 2023 expectations as a growing number of buyers turn to new construction rather than competing for the meager supply of existing homes

September 6, 2023
New house under construction on a sunny day
Image: Kirk Fisher / stock.adobe.com

Despite rising mortgage rates and home prices, national builders such as KB Home are exceeding expectations in 2023. A lack of existing inventory has led to increased demand for new homes, resulting in 31% year-over-year growth in new-home sales, according to the U.S. Census Bureau. KB Home's CEO, Jeffrey Mezger, is optimistic that a chronic shortage of existing housing inventory could lead to heightened new-home demand and provide increased opportunities for home builders for years to come. 

There were 46% fewer active home listings in August 2023 compared with August 2019, but during the three-month period ending on May 31, KB Home recorded net home sales of 3,936, in line with the 3,914 homes it sold during the same three-month window in 2022, Fortune reports.

In a recent interview with Fortune, KB Home CEO Jeffrey Mezger expressed his optimism about the homebuilding industry’s prospects, attributing it to the chronic shortage of existing and resale housing inventory. Mezger thinks that lack of inventory spells years of opportunity for homebuilders.

“I shared it on our last earnings call: Once we, quote, ‘found the market’ and got our sales pace back [in early 2023], we’ve been raising [home] prices across the footprint and in the second quarter reported that we raised prices in 70% to 75% of our communities during the second quarter. I would say the [house price bottom is in. It’s being caused, if you go macro for a minute, it’s a story that’s true in every city we operate in, there is no [existing] inventory out there,” Mezger tells Fortune.

Read more


leaderboard2 - default

Related Stories

Housing Policy + Finance

Pennsylvania Allocates $98M to Tackle Affordable Housing Shortage

The state of Pennsylvania has allocated the funds from the American Rescue Plan Act to produce more affordable housing units

Community Development

San Francisco Complex Offers 200 Housing Units Plus Support Services

San Francisco's City Gardens affordable housing complex offers on-site social services for families transitioning from being unhoused 

New-Construction Projects

Florida Senior Housing Project Overcomes Challenges

A new senior housing development in Collier County, Fla., will provide affordable rentals for essential workers, seniors, and veterans

boombox1 -
native1 - default
halfpage2 -

More in Category

Get your sales and marketing teams together to create and deliver a consistent brand message from start to finish

Pundits may not agree on the timing nor the severity of the next economic downturn, but one thing’s certain: these 10 essential tactics will boost your business' efficiency, productivity, and profit

A closer look at what’s propelling the adoption of off-site construction methods in home building

native2 - default
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
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.