After plummeting to anemic levels during the Great Recession, housing production struggled throughout much of the last decade to keep up with demand. As the economy recovered and people began returning to the housing market, new home building failed to make a timely comeback.
Despite the setback, home builders were able to add nearly 7 million homes to the U.S. housing market over the last ten years. Between 2010 and 2019 there were 6.8 million single-family housing starts nationwide, according to the National Association of Home Builders.
As the economy began to recover post-recession and demand for new homes came back strong, builders saw little reprieve in costs. A shortage of lumber and construction goods caused costs to skyrocket. The NAHB reports that lumber prices shot up by 63 percent in 2018 alone.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.