Builders: Inventory Woes Not Our Fault

Sun_HousingSupply_LaurenA shortage of homes for-sale continues to weigh on the market and is one of the biggest obstacles facing home buyers. But homebuilders say stop blaming us.

“It does feel like every other [report] has Lawrence Yun [NAR’s chief economist] saying, ‘Builders need to build more,’” Robert Dietz, chief economist of the National Association of Home Builders, told attendees at Sunday’s session, “Housing Needs More Supply: Two Perspectives.” “Yes, we would like to, but there are reasons [why we can’t]” add additional new-home inventory.

Dietz pointed to a labor shortage, pricier lots, and strict local regulatory policies as compounding the issue. Further, two-thirds of homebuilders recently surveyed by NAHB said they’d build more if there were more lots available, Dietz said.

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  1. Home builders have been building homes on lots developed prior the housing crash in 2008. Many of those lots were foreclosed on, builders were purchasing these lots at artificially low prices. The inventory of these lots is almost gone. Builders have to purchase or develop lots at 2017 and 2018 prices. We are going to see a significant increase in new home prices in 2018. Developers and builders are developing many new subdivisions in Albuquerque & Rio Rancho.

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