“While the demographics and interest for homebuying remain solid, higher costs and material access issues have resulted in lower levels of home building and even put a hold on some new home sales,” said NAHB Chief Economist Robert Dietz. “While these supply-side limitations are holding back the market, our expectation is that production bottlenecks should ease over the coming months and the market should return to more normal conditions.”
Both Dan Durden, the CEO of the Pennsylvania Builders Association, and Dr. Robert Dietz, chief economist for the National Association of Home Builders, reported that costs of building materials have been increasing dramatically.
“Housing has clearly been a bright spot during the pandemic and the sharp rebound in builder confidence over the summer has led NAHB to upgrade its forecast for single-family starts, which are now projected to show only a slight decline for 2020,” said NAHB Chief Economist Robert Dietz. “
Half of buyers in a recent survey, who have been looking for a home for a minimum of three months, said they haven’t bought a home yet because they can’t find a home they are able to afford, an increase of 5% year-to-year.
“Builders report solid demand for single-family homes. However, they continue to grapple with labor shortages, a dearth of buildable lots and rising construction costs that are making it increasingly challenging to build homes at affordable price points relative to buyer incomes,” said NAHB Chairman Greg Ugalde.