Would-be homebuyers will be seriously constrained by soaring home prices, rising interest rates and a noticeable shortage of developable land, Starwood Land Advisors' Mike Moser said in a recent discussion with John Burns Real Estate Consulting.
Moser told JBREC's Dean Wehrli that new home sales will likely fall below 800,000 this year and likely won't accelerate much in the near term. He says increasingly cumbersome entitlement processes in municipalities of all sizes are partially to blame.
"I don't know how we're going to ever see 1,000,000 like we saw in 2004 and 2005," Moser said. "I don't think there's enough land in the way, I don't think it's been entitled and engineered and can get out of the entitlement process fast enough. And that's what you're seeing right now… the biggest supply chain shortage is land."
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