U.S. new home construction in 2018 is expected to lag 300,000 units behind demand levels, according to the latest data and forecasts from industry experts.
During a panel discussion at the National Association of Real Estate Editors conference in Las Vegas this week, the National Association of Home Builders chief economist Robert Dietz says that supply-side shortages are to blame, "The primary factor for it is due to tariffs on Canadian softwood lumber. We have effective 20 percent tariff rate right now on Canadian lumber." Builders are expected to start 909,000 new homes this year, The Denver Post reports.
If there is one segment of the market that is moving in the right direction when it comes to meeting demand, it’s townhomes, Dietz said. His research shows that attached housing products such as condos and townhomes make up 12 percent of new-home starts across the country. It’s a housing segment that he feels meets the demands of millennial buyers when it comes to pricing and its ability to fit into more urban neighborhoods.
Advertisement
Related Stories
Forty Under 40
2024 Forty Under 40 Nomination Form
Help us recognize the rising stars, innovators, and game-changers in the housing industry!
Market Data + Trends
Housing Market Index Shows Builder Sentiment Continues to Rise
In March, builder confidence in the market for newly built single-family homes hit its highest level since July 2023
NAHB
Overcoming Challenges, Celebrating Victories
NAHB Chairman's Message: 2023 was a challenging year for home building, but among the challenges, there were many victories as well
