According to the National Association of Realtors, home construction is not on the rise. Why? Unlike markets of the past, new jobs are not adding up to new home purchases. This means that soon homebuyers may see a housing shortage and higher housing costs. There are several factors at work. Small construction companies have less credit access, student debt and limited credit is tying up homebuyer finances, and last year’s affordability is dissipating. Furthermore, more young, employed people are choosing apartments and condos over detached homes, notes The National Association of Home Builders. With construction-ready land being pricey and in short supply, builders are constructing expensive homes for buyers unburden with credit issues.
Read the full article here: Realtors Say Home Construction Is Lagging – Fine Homebuilding