Remember when we were coming out of the pandemic and people were saying they couldn’t build houses because materials were so expensive? Good times, right? Well, there’s still a shortage of available homes, but the blame no longer goes directly on lumber prices.
Here’s Five Fast Facts About The Home Shortage:
- 🏘️ Got Wood? - Material cost is still a problem, but prices have dropped 35% in the past year. So things are getting more affordable.
- 📈 So High - Interest rates are becoming the new hotness, hitting 66% of builders. Inflation is still a problem with 85% of builders surveyed saying this is the biggest problem.
- 📺 Shut Up - Surprisingly, we’re part of the problem! That’s right! Builders say articles, news segments, and videos encouraging folks to be cautious about homebuying are apparently working! In fact, according to a recent survey, 55% of builders don’t like the fact we’re talking about WAITING to buy a home. All the articles and such have, indeed, caused potential buyers to wait for lower rates.
- ⚖️ Red Tape - Local and state governments are also becoming a problem. Pesky zoning rules, building permits, land use rules, and even unsavory types trying to move developments into less-than-desirable areas are becoming more and more common…
- 📉 No Sale - There’s also another issue: homeowners aren’t selling! It goes back to an earlier point – homeowners are waiting for interest rates to drop because they won’t be able to afford to buy a newer home. So, it's a weird feedback loop where making it hard to buy a home makes it less likely to SELL a home, too… got it…right…😵💫
🔥Bottom line: This isn’t a short-term problem. It’s going to take years of building to get things back to normal. Barriers keep going up and it seems like no one is doing anything to change that. It’ll be interesting to see what drives the change.
Are you looking to buy a home?
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