Our Director of Research, Rick Palacios, Jr., spoke on Bloomberg’s What’d You Miss? earlier this week. Rick discusses the current housing demand backdrop along with how builders are dealing with rising construction costs, product shortages, and extended lead times.
Additional talking points include:
- In June, home builder construction costs (labor and materials) jumped 22% YOY nationally, with builders raising prices 20% YOY according to our survey.
- Builders are pricing homes later in the construction cycle given the volatility in construction costs, product/labor shortages, and extended build times.
- Seasonality has returned to housing, which is normal for summer but wasn’t the case in 2020 during peak-COVID housing insanity.
- With summer upon us and people finally able to travel, we expect housing to become less top of mind for consumers, albeit with demand still going strong.
Follow Rick on Twitter: @RickPalaciosJr