The shortages have powered homebuilders’ earnings, sending their stocks soaring, with the S&P Composite 1500 Homebuilding Sub Index up 41.90% so far this year.
It is thereby squeezing the pool of existing homes, which are typically more affordable than new construction. Buyers “can’t find anything” on the resale market, said luxury homebuilder Toll Brothers in a post-earnings call on Wednesday, as it announced a 10% sequential rise in price in the quarter ended July.