Single Family New Home Production in U.S. Facing Headwinds in 2019

According to economists speaking at the National Association of Home Builders annual conference in Las Vegas this week, mounting housing affordability concerns in the U.S. coupled with supply-side constraints will limit single-family output to modest gains in 2019. "Ongoing job creation and solid household formations will keep demand firm, but builders will continue to grapple with supply-side headwinds that will dampen more vigorous growth in the single-family sector," said NAHB Chief Economist Robert Dietz. Specifically, builders are dealing with a chronic lack of construction workers; a shortage of buildable lots; onerous regulations; tariffs on lumber and other key building materials; and a slow growth in acquisition, development and construction loan activity that is failing to keep pace with demand.