July’s Residential Construction report represented a sharp drop in the third quarter of 7.0%, plunging to a seasonally adjusted annual rate of 1.534 million units.
Bill Banfield, Rocket Mortgage Executive Vice President of Capital Markets, offers the following insight on the report:
“Skilled labor shortages and high supply costs seem to be the main culprits for the downturn in home construction. As demand continues to overpower builders’ ability to keep up with new inventory, we will keep seeing a stressed housing market and interested buyers sitting on the sidelines until construction returns to historical levels.”
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