While not news to most in the home-building sector, the Federal Reserve appears somewhat alarmed by the inventory shortage of new homes for sale. Business Insider reports:
In the release of the Federal Reserve's minutes from the September meeting, the members of the Federal Open Markets Committee spoke about the various aspects of the US economy and their progression since the July meeting.
The FOMC said that the housing market looks a bit weak, saying "real residential investment spending continued to be soft in the third quarter." The reason? The Fed said that at least part of the issue is the so-called "new housing crisis."
"However, the sluggishness in the housing sector appeared to have continued into the third quarter. A couple of participants pointed to limited availability of lots and a shortage of skilled labor as restraining residential construction activity in their Districts; in one District, constraints on the supply of new homes for sale were expected to boost spending on home improvements and offset some of the drag from the slowing in new construction."