All the conditions seem to be in place: steady economic and job growth, low interest rates, and an ever-increasing demand; so why isn’t more construction of single-family homes? According to the National Association of Home Builders a shortage of available lots, lack of qualified labor and continued tight access to construction and development loans remain stumbling blocks.
Nevertheless, NAHB is predicting single-family home construction will increase by 14 percent in 2016 to 812,000 and then rise another 19 percent in 2017 to 964,000 units.
All signs suggest that millennials’ goal is to purchase a single-family home in the suburbs. Builders remain “cautiously optimistic” that this will become more likely in the next two years.