The housing market is currently facing many challenges, the main one being lack of inventory for sale. In order to meet demand, builders must increase the total stock. However, there is a lower supply of labor that can’t meet the demand of increased production.
“Until the supply of residential construction labor increases and housing starts pick up the pace, expect continued supply shortages in many housing markets,” First American Chief Economist Mark Fleming said about last months report, “Good for prices and homeowners, but an affordability challenge for the millennial first-time homebuyer.”
Labor isn’t the only issue facing new construction. Lack of property lots and higher construction costs make it difficult for many builders to move at the pace the market is demanding for. In the midst of National Homeownership Month, Housing and Urban Development Secretary Ben Carson reiterated the importance and availability of homeownership in America.
“After all we’ve been through, homeownership remains an American value and the cornerstone of our economy,” said Secretary Carson. “Today, we recognize the abiding value of owning a home, and rededicate ourselves toward ensuring that every hardworking and credit-worthy American enjoys a fair chance at becoming a homeowner.”
The Census Bureau’s New Residential Construction Report will release at 8:30 a.m. EDT Friday.
This Week’s Schedule:
Federal Budget, Monday 2 p.m. EST
Yellen Press Conference Wednesday 2:30 p.m. EST
Freddie Mac Weekly Mortgage Survey, Thursday 10 a.m. EST