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Americans Herded Into New Construction Amid Acute Lack Of Resale Homes
You surely didn't "hear it here first," but you've certainly heard it here a lot: An acute dearth of resale inventory is driving America's desperate homebuyers into new construction.
That's a boon to builders, and they needed it. 2022 was challenging, to put it mildly. Builder sentiment, as measured by the NAHB, fell for a year straight before finally turning a corner in January.
This month, the headline index rose back to 50, according to a Tuesday update. The range of estimates, from nearly
A 6%+ mortgage rate would usually translate into buyers needing 6% rate of appreciation for a purchase to make sense. If you project nominal gdp to grow 4-5% that suggests that this rate is restraining the housing market. As this article points out, there is a supply problem as well. The housing market is clearly out of balance.
H man , I hope you take this article to heart and decide to build your own fortress (house).
I accept the logic of the NAHB econ guy that people are staying put and not selling but who is buying? Our population growth is near zero. Where is the demand coming from? Something just doesn’t add up.
Millenials are the largest generation in the US and are at that age where they want to buy a house. Also, population growth has certainly slowed, but still growing. Add investors to the equation and you’ve still got more than enough demand to keep prices buoyant.
The Fed should dump its MBS holdings — biggest social welfare program ever whose biggest beneficiaries are Wall St. banks and comfortable to super-affluent Americans..