With low mortgage rates, plentiful jobs, and the market’s desire for more space, the housing boom in the United States stands at record levels. Last week the National Association of Home Builders announced a 7% jump from August; such levels haven’t existed since the housing boom in 2007.
With home inventory falling, construction of new homes moved up to 712,000 during September: the highest since 2007. Renters also flow in the upward draft; construction of multi-family units sits at its highest since 1974.
Supply chain issues drive the rush to build. Such delays cause builders to postpone some projects while digging foundations on others.
“Although demand and home sales remain strong, builders continue to grapple with ongoing supply chain disruptions and labor shortages that are delaying completion times and putting upward pressure on building material and home prices,” Chuck Fowke, chairman of the National Association of Home Builders, said this week.
Economists say that this large number of houses in limbo, many of which already sold, could motivate the Federal Reserve to dial back its emergency monetary policy, which would send mortgage rates back up.