The lack of housing is one of the critical challenges facing the for-sale market. The housing shortfall is partially due to significant underbuilding around the country, amplified by the sizeable population of millennials and Generation Z moving through their homebuying years. Ultimately, these trends threaten to limit or delay homeownership and wealth-building opportunities for many of these households.
Building a single-family home is a complex process with many steps. Across various stages of the process, builders face challenges that threaten new construction. Broadly, total costs have soared. In 2004, construction expenses accounted for about half of the average single-family home’s $373,349 estimated sales price. By 2024, not only had...
