The housing market has been on fire during the pandemic, with demand outstripping supply as people stuck at home have yearned for more space to live and work. Fierce competition for the depleted inventory of existing homes has put even more pressure on builders, but shortages of ever-more-expensive raw materials are slowing the pace of building. A lack of available land and labor are two other major headwinds likely to continue to drive prices higher, according to the National Association of Home Builders. “The race to acquire lots is on as builders continue working to quickly get more homes on the ground,” said Ali Wolf, chief economist at Zonda, in a recent statement. An index value of 100 represents perfect equilibrium between the supply and demand, Zonda said, with any number 75 or below reflecting a market that’s “significantly undersupplied.”
