1. Housing Affordability Crisis

• High interest rates have squeezed buyers’ budgets. Even as inflationary pressures have cooled somewhat, borrowing costs remain elevated, pushing monthly payments out of reach for many Americans.

• High home prices, rising insurance, and property tax burdens intensify the affordability squeeze, discouraging would-be buyers and fueling uncertainty.

• Many potential buyers believe waiting will yield lower prices or rates, prolonging market hesitation.

2. Persistent Labor and Materials Shortages

• A chronic shortage of skilled labor continues to plague the industry, with about 64% of builders naming it a top concern for 2025.

• Material availability and costs are resurging concerns, with 64% of builders flagging price spikes as a major issue for 2025, particularly for key products and components.

• These constraints combine to cause project delays, increased costs, and unpredictable build times.

3. Lot Availability and Regulatory Hurdles

• Builders increasingly struggle to secure developed lots, with two-thirds reporting problems accessing viable land. Coupled with rising impact fees and permitting costs, this bottleneck stifles production and innovation.

• Local gridlock, regulatory uncertainty, and shifting zoning rules further complicate planning and expansion efforts.