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Rising construction costs squeeze housing supply

April 3, 2016

Housing demand in major cities and urban areas is high, but the price to build is expensive, driving prices continually higher. According to analysis presented by Pacific Union Insights, a lack of new construction is a major supply problem facing many desirable and economically vibrant U.S. cities, with California experiencing one of the most severe shortages.

 

California’s regulatory environment poses many obstacles to new construction, causing land prices, labor costs, and home prices to appreciate well above the national average. Millennials in particular are struggling to save enough money for a home since prices are rising faster than their pay. - Source: HousingWire

 

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