The home construction market has already been dealing with shortages of skilled labor and building materials, along with expensive construction loans. Those factors will add to the costs of rebuilding communities destroyed by fires.
Meanwhile, commercial and government construction spending actually fell.
A shortage of skilled labor, high labor costs, and uncertainty about the effect of tariffs on lumber prices weigh on some homebuilders.
The pandemic exodus from coastal areas to cities like Austin and Atlanta has cooled off, and rental supply is outstripping demand.
Inflation, climate change and zoning laws have increased rents and building costs. Developers are focusing on high-priced luxury units.
New home sales fell 5.6% in October, but they’re still up 18% over last year. And they make up a record share of total inventory.
High mortgage rates and building costs have reversed the pandemic trend of bigger houses.
Many of the projects being completed were delayed by the pandemic.
High interest rates are hitting the construction industry, but homebuilder confidence keeps growing, given the steady demand for new construction.
There may be more supply, but it tends to cater to demand at the higher end of the income spectrum.
