According to Reuters, small homebuilders are pausing the addition of more homes to the market due to stringent lending restrictions and higher borrowing costs. Industry experts believe this could lead to a scarcity of newly constructed homes. Private homebuilder account for building over two-thirds of all single-family homes in the U.S., and tighter credit availability could add to the lack of inventory for prospective homebuyers. - Along with the strict financial conditions, homebuilders are facing an acute shortage of building materials and labor.
- President of Hallmark Homes, Paul Schwinghammer, said several small builders are halting development and plan to wait until the market condition improves.
- The National Association of Home Builders predicted housing starts to fall below 1.4 million this year, lower than 1.55 million in 2022 and 1.6 million in 2021.
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