A renter generation?

The NAHB home builder survey in October weakened further to 40 from 44, 4 pts below expectations and the weakest since January. The present situation was down by 4 pts to 46 and the future outlook was softer by 5 pts. Of note, Prospective Buyers Traffic was down by another 4 pts to just 26, well below the breakeven level of 50.

To the growing problem of slower traffic, the NAHB said what we all know, but painfully for first time buyers, “some buyers, particularly younger ones, are priced out of the market because of higher interest rates.” On the supply side, “Higher rates are also increasing the cost and availability of builder development and construction loans, which harms supply and contributes to lower housing affordability.”