There are two major “headwinds,” as PulteGroup CEO Richard Dugas describes them, that will continue to hinder overall housing demand. These headwinds are nothing new, in fact, they have been the two main issues facing the housing market for a while now; limited mortgage availability, especially for entry-level buyers, and difficulty finding labor for new construction.
While there have been changes made in an effort to work through the labor issues, Dugas said there may not be a quick solution for solving the mortgage access problem, according to Bisnow.com.
Despite the mortgage issue, Dugas believe new-home sales will continue their upward trajectory of slow but steady growth for the next few years. He bases this projection on strong job growth, supportive demographic trends, and low interest rates.
Dugas also spoke on the ubiquitous topic of Millennial homebuyers and how PulteGroup is attempting to lure them from being renters to becoming homeowners. According to Dugas, Pulte is focusing on older Millennials who are comfortable with townhomes or condos over detached homes. These townhomes and condos are a perfect fit for many Millennials who are looking to live in a more urban environment, which a large portion of Millennials seem to favor.
To read the entire interview with Dugas, click the link below.