Our Director of Research, Rick Palacios, Jr., spoke on Bloomberg’s What’d You Miss? earlier this week. Rick discusses several factors driving insane demand across the housing market today, supply bottlenecks suppressing new home construction, and why new home prices jumped a whopping 16% YOY in April.
Additional talking points include:
- Inflation in housing is unlikely to be as transitory as other segments of the economy.
- Volatility in construction costs, land costs, and labor costs are forcing some builders to pause or slow activity until they have more certainty around production schedules and cost trends.
- Housing’s benefitting from a captive audience with the consumer during COVID, which will likely moderate from insane levels to healthy levels as the world normalizes.
Follow Rick on Twitter: @RickPalaciosJr