According to National Association of Home Builders (NAHB) Chief Economist Robert Dietz, the supply of single-family homes is less than five months, near average, but that number drops when looking at many of the hotter markets. Redfin staffer Hal Bundrick takes a look at why home builders aren't able to build enough homes to satisfy a growing demand.
One of the key reasons for this is the difficulty's face in securing credit from banks. Another prominent issue is a lack of labor:
Labor is another issue builders face. In fact, it’s the top business challenge for builders, according to NAHB surveys. Dietz notes the residential construction industry lost 1.5 million jobs during the Great Recession, and only 600,000 to 700,000 jobs have been replaced in recent years...the existing construction workforce has a median age over 40. He says the challenge is to attract the next generation of construction workers.