Newsweek headline: U.S. Housing Market Is in a ‘Meltdown’: Economist
BY KATHERINE FUNG ON 7/18/22 AT 1:01 PM EDT
“Production bottlenecks, rising home building costs and high inflation are causing many builders to halt construction because the cost of land, construction and financing exceeds the market value of the home,” association chairman Jerry Konter said in a statement.
In the release, NAHB Chief Economist Robert Dietz said the challenge of affordability has priced out a significant portion of home purchasers from the market and warned that supply-side issues need to be addressed in order to tackle the issue of affordable housing.
Dietz isn’t alone in his view. Moody’s Analytics Chief Economist Mark Zandi also recently told Newsweek, “High mortgage rates are combining with high house prices, and affordability is being crushed. So, first-time homebuyers are getting locked out of the market.”