NAHB’s Robert Dietz on how low supply and rising costs are impacting home prices

In today’s Daily Download episode , Robert Dietz , chief economist and senior vice president of economics and housing policy at the National Association of Home Builders joins the Housing News Podcast to discuss low housing inventory and rising lumber prices. For some background on the interview, here’s a brief summary : In this episode, Dietz discusses how a national shortage of housing inventory and rising lumber prices have contributed to an increase in construction costs , which is making it much more difficult for builders to introduce affordable housing supply to the market. During the interview, Dietz also explains where America’s housing inventory currently stands when compared to historical home-building trends. According to him, the housing market is experiencing a housing deficit of about a million homes, which includes the combination of both apartments and single-family homes. “While estimates may vary, most economists agree there is a housing deficit. Freddie Mac had an estimate of about two and a half million homes as a shortage, and you can see the critical impacts of that shortage,” Dietz said. “One of these impacts is that home prices are rising faster than incomes during the post-Great Recession period, and that, of course, has led to declines in housing affordability.” The Daily Download examines the most compelling articles reported from the HousingWire newsroom. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd and Victoria Wickham. HousingWire articles covered in this episode: The answer to the affordable housing shortage no one wants to hear Spike in lumber prices boosts construction costs High home prices erase homebuyers' increased purchasing power US inventory of homes for sale reaches record low NAHB's Robert Dietz talks housing inventory and homebuyer affordability