The Expert Podcast

• Home building permits have dropped by 12.8% year over year, signaling a potential crisis in housing availability.
• A 5 million home shortage already existed before this decline, and the reduction in permits only worsens the situation.

• The decline in new home construction, particularly spec houses, is expected to exacerbate the shortage.
• By 2030, it's predicted that there will be a 10 million home shortage to meet market demand.

• Higher interest rates and rising home prices are unlikely to cause a significant crash in home values, but may cause some softening in certain markets over the next couple of years.
• Unless construction picks up dramatically, a housing shortage will persist, and owning a home may become a rarity and a luxury for certain people.

• The lack of available labor, financial constraints, and uncertainty about future market conditions are all contributing to a slowdown in home construction.
• Builders are hesitant to construct speculative homes due to market instability, and most homebuyers prefer to purchase already built homes rather than go through the process of commissioning a new one.

• Financing new home construction is more complex and challenging compared to purchasing an existing home.
• Builders face increased obstacles, while most buyers are reluctant to build homes due to longer wait times and difficult financing requirements.

• The construction industry, homebuyers, and related sectors should brace for a continued housing shortage in the coming years.
• Builders might consider accumulating land for future construction, while homebuyers may need to work closely with builders to create custom homes.

• For skilled workers in the construction industry, there is potential for high earnings, with some companies offering up to $80-90 per hour for reliable, qualified labor.
• Suppliers may need to adjust their strategies by focusing on higher margins to make up for reduced volume.

• The housing market is facing significant challenges due to reduced construction and increased demand. Now is the time for builders, buyers, and construction industry professionals to plan ahead and make strategic decisions for the future.