WASHINGTON, DC — A growing number of Americans are turning to new-home construction as existing-home inventory remains limited and mortgage rates begin to stabilize, the National Association of Home Builders is reporting.
“Buyers are purchasing new homes … instead of waiting for an existing home to come on the market,” said Alicia Huey, chairman of the Washington, DC-based NAHB, which reported that sales of newly built, single-family homes increased 4.1% in April, reaching their highest level since March of 2022.
“Builders want to meet buyer demand, (although) high construction costs and labor shortages remain persistent challenges for the residential construction industry,” according to Huey. With limited available housing inventory, new construction will continue to be a significant part of prospective buyers’ searches in the quarters ahead, Huey added.
Residential construction obstacles include shortages of distribution transformers and other building materials, as well as tightening credit conditions for residential real estate development and construction.