Why is it Hard to Build a Median Priced Home?
A recent NAHB study shows that 59% of new home buyers expect to pay under $250,000, with 28% expecting to pay between $150,000 and $249,999. So why were 65% of the new homes started in 2015 over that limit?
NAHB chief economist Paul Emrath states a few major challenges for developers and builders: labor shortages, lot pipeline imbalances and regulatory overreach. All of these greatly contribute to the price of a new home.
These issues challenge many homebuilding companies to revisit their business models. Naturally, a majority of businesses want to offer products at the level with the most consumers. But that is getting more and more difficult.
Click here to read the full article from NAHB.