The current projects she referred to include a record number of single-family homes under construction, which had increased to 702,000 units – the highest level since 2007.
She, however, expressed concern about material shortages and was less effusive about data showing that lumber prices had plummeted, from more than $1,600 per thousand board feet to the more recent price of about $400.
“Lower lumber prices are reflected in the stock market, but they have not yet made their way to builders. The hope is that they will, which should help to ease the cost,” she said, warning that there were still significant shortages in construction materials, particularly for windows and cabinets.
In addition, she alerted to the fact that more skilled laborers in the construction industry were needed. “Those were headwinds that existed even prior to COVID and made worse by the pandemic,” she said. “So I don’t anticipate they will disappear entirely.
“The bottom line is the housing market has been underbuilt for a decade and builders can’t close the gap between supply and demand overnight, but they are trying.”