Why New Home Prices Are Falling Despite a Housing Shortage | Robert Dietz

More homes are hitting the market, builders are offering incentives, and in many areas, new homes are now priced below existing resale homes. Yet affordability remains near multi-decade lows, and a growing share of young adults are stuck renting or living with their parents longer than past generations ever did.

Builders discounting their way through a slow season is only part of what’s going on.

The same forces that created the housing shortage in the first place, including regulatory costs, a shrinking pool of construction workers, and a lending environment that’s made it harder for smaller builders to operate, are still in play.

Robert Dietz, chief economist at the National Association of Home Builders, joins Market Insider to explain what’s driving the shift, how builders are adapting to a market where new and resale pricing have flipped, and what it would take to bring affordability back within reach.

Views expressed in this video are opinions of the host and guests and do not necessarily reflect the views of The Epoch Times.