As a Savannah-based home builder with more than 40 years of experience, NAHB chairman Jerry Konter sees how entry-level housing has become increasingly difficult to build every year. In his recent opinion piece for MarketWatch, he explains the many reasons why builders are unable to build affordably priced homes targeted to the first-time home buyer and potential solutions to reversing the trend.
There are many reasons why builders across the U.S are unable to build affordably priced homes targeted to the critical first-time home buyer: Rising costs stemming from historically high price levels for lumber and other building materials, supply-chain bottlenecks that still exist two years after the COVID-19 pandemic began, surging interest rates, excessive regulations, overly stringent building codes, excessive zoning and density requirements, and a persistent lack of construction workers.
Finding and enacting solutions to these housing challenges is critical to fulfilling the housing needs of all Americans. It will require policymakers at all levels of government to make housing a top priority.
Since the start of the pandemic lumber prices are up nearly 75% and currently stand above $600 per thousand board feet even after posting significant drops in recent weeks.Read More