The Impact of New Construction
A years-long relatively low level of new home
construction has significantly contributed to the
industry’s years-long inventory shortage. This imbalance
significantly contributes to a shortage of homes for sale,
which greatly impacts real estate activity and has been
a major factor in the sustained upward surge in prices.
This chapter dives into the homebuilding industry, how
it operates and its role in the current housing inventory
shortage.
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