The U.S. needs more homes, but builders may be slowing construction

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The U.S. needs more homes, but builders may be slowing construction
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The U.S. needs more homes, but builders may be slowing construction. | via NPR

The U.S. needs 4 million more homes in order to keep up with demand. But high prices and mortgage rates are making builders question whether they want to build homes that might not sell.

That could be a very big problem because the main reason home prices have risen so much in recent years is that the country is in the midst of a historic housing shortage.

All this has many people wondering whether we might be in another housing bubble that's about to burst. But most economists say while prices can't keep rising like they have and might decline in some markets, they don't expect a huge collapse in prices similar to the one that caused a national and global recession in 2008.

Konter, the NAHB chairman, said government policies could help alleviate the problems the market is experiencing.

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