The challenge for homebuilders.
Welcome to the Know the Difference Minute for Tuesday, July 19th.
Used to be, the top issues for homebuilders were finding qualified labor or locating suitable land to build on.  Housing was among the strongest sectors of the economy since coronavirus struck early in 2020. But, along with other areas of the economy, housing is showing signs of a downturn.
Nationally, both new home construction permits and starts fell in June. Buyers are getting cold feet with rising mortgage rates edging towards 6%—and inflation is affecting consumer confidence and purchasing power.  
It’s not just crazy-high lumber prices. Those leveled off after the March peak. It’s everything else from appliances to windows to flooring. Each increase adds to the price tag.
The one bright spot in the report was the rise in multi-family construction. As rents rise, the appeal of apartment projects increases for developers. 
I’m Dave Spano from Annex Wealth Management.  That is your Know the Difference Minute.