2022 Housing Affordability Will Remain Challenging

Between Inflation, Interest Rate Spikes, and Construction
by Staff

Home prices averaged a record rate of 19 percent in 2021 yet, economists are split on their outlook on how much homes will appreciate in 2022.

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Home prices averaged a record rate of 19 percent in 2021 yet, economists are split on their outlook on how much homes will appreciate in 2022.

According to the National Association of Home Builders (NAHB), housing affordability will remain a challenge through 2022.

Low existing home inventory and strong buyer demand will keep the housing market hot moving forward through 2022. Meanwhile, builders continue to struggle with material bottlenecks and labor shortages that limit the pace of construction and keep upward pressure on home prices according to economists speaking at the 2022 International Builders' Show in Orlando on February 8, 2022.

 

"Building material costs are up 21 percent compared to a year ago," said NAHB Chief Economist Robert Dietz. "Their price and availability, along with persistent supply chain bottlenecks, remains the most urgent challenge for builders as they seek to boost production to meet rising demand."

Meanwhile, builders are contending with persistent labor shortages, with the government reporting more than 300,000 job openings in the construction industry in December.



https://nahbnow.com/2022/02/housing-affordability-will-remain-a-significant-challenge-in-2022/

Filed Under: HOUSING AFFORDABILITY, ECONOMICS