Economists have been calling for increased home building to respond to buyer demand as some markets see a record low number of listings. But home builders say headwinds in construction are in the way of adding to the scarce inventory.
Having been the biggest hurdles in 2021, surging prices of building materials and their low availability will likely burden this year as well. Delays in obtaining those materials are also slowing timelines, according to builders recently surveyed in the National Association of Home Builders/Wells Fargo Housing Market Index.
Builders also expect these problems to worsen over the next year, according to the NAHB/Wells Fargo Housing Market Index:
- Rising inflation in the economy
- Federal environmental regulations and policies
- Gridlock/uncertainty in Washington that could make buyers cautious
- Concern about employment/economic situation