There's a housing shortage in the US and labor constraints means it will last several more years, according to the chief executive of Beazer Homes, Allan Merrill.Thursday, and with the Federal Reserve attempting to slow down lending and cool the economy by raising interest rates, it's hard to expect any easing of that shortage.
The exec added that affordability limits his company's ability to fully serve the current demand, and as far as building out more homes to address the shortage, he sees broader economic obstacles in the way. He added that Beazer Homes has seen significant reductions in lumber and commodities costs, which has been helpful in a higher mortgage rate environment. Additionally, he noted that homebuyers are generally benefitting from higher wages, which helps offset some rising household costs.