Builders Try to Meet Overwhelming Inventory Demand
“The housing market is hot. Homebuyers have swiftly moved into the market to take advantage of the unimaginably low mortgage rates. But inventory is lacking with a sizable backlog of buyers getting outbid by others. More homes therefore need to be built to help relieve the housing shortage. The latest increase in housing starts of 1.186 million (17 percent gain) is only a bare, partial recovery after a shutdown. The country needs at least 1.5 million units. Building more homes also has an added benefit of boosting the local economic growth.
According to the U.S Housing Development and Commerce Department, housing starts increased 17.3 percent to a seasonally adjusted rate of 1.19 million units.”