Currently Reading

Tight Housing Market Causes Supply Issue

Advertisement
Housing Markets

Tight Housing Market Causes Supply Issue

Some analysts say too many houses are being built— homebuilders disagree.


October 13, 2021
Money, a calculator, and model homes on a table
Photo: stock.adobe.com

A discrepancy between population decline and building rates for single-family and multi-family homes is generating greater market competition and driving up prices for house hunters. 

Though market analysts and homebuilders seem to disagree on the necessary output of new homes, the current supply is simply not meeting a rising demand according to the National Association of Realtors.

The supply of homes for sale at the end of August totaled 1.29 million units, down 1.5% from July and down 13.4% from August 2020, according to the National Association of Realtors. That represents a 2.6-month supply at the current sales pace, which is one of the lowest supplies on record.

“The market is too hot. There is just a massive amount of capital that’s coming to the space,” Zelman said, referring to the investor interest in the housing market. 

“The challenge now is that we have the supply-side limitations, including lack of building materials and a growing shortage of skilled workers, plus higher home prices relative to incomes,” said Dietz.

Read More

 

Related Stories

Built for Rent

Single-Family Rentals Are Taking Over the Housing Market

For some, single-family rentals are taking precedence over homeownership.

Market Data + Trends

September Reports Increased Home Sales

Monthly home sales rebounded in September after August decline.

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

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
Subscribe
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.