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Everything You Need To Know About New-Construction Homes

Experts are predicting a continued shortage of new-construction homes.

A few weeks ago, I attended the Peoples Company Home Builders Sentiment here in Des Moines, and it was fascinating, I learned a lot of great information there, and I am looking forward to sharing that with you today.

One of the economists noted that last year, and continuing into this year, we’ll see a lot of change for homebuilders. Some of the issues that the economist pointed out were labor shortages, interest rate fluctuations, and supply chain issues.

Regarding labor, there are roughly two open jobs for every person in the United States. The construction industry, in particular, has over 400,000 available jobs. When it comes to interest rates, we are all aware of the increased volatility of recent years. Finally, supply chain issues continue to be present in the market. Lumber prices specifically have been erratic.

“The U.S. has been substantially behind in new home production for the last few decades.”

Demographically, the economy looks pretty well-sustained over the next seven years as millennials reach their prime home-buying years. That being said, demand is likely to change after 2030 as birth rates have not been increasing.

Lastly, experts have pointed out that the U.S. has been substantially behind in new home production for the last few decades. While it would take an estimated output of as much as 1.2 million new homes annually to compensate for the lack, we have consistently been in the range of 900,000. This means that supply is a major determining factor for the current demand.

If you have any questions about home building or real estate in general, please feel free to reach out to me by phone or email. I would be happy to serve as your resource for all of your real estate needs.

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