Robert Dietz, Ph.D., is chief economist and senior vice president for Economics and Housing Policy for NAHB, where his responsibilities include housing market analysis, economic forecasting and industry surveys, and housing policy research.
However, credit availability, delayed approvals, and increased expenses are hampering development.
The association forecasts starts to decline by more than 10% this year and in 2024.
The association saw slight increases in its production and occupancy indexes for the fourth quarter.
Developers are becoming increasingly cautious, with high construction costs and their effects on affordability.
Strong demand compensates for rising costs of land, labor, and materials.