The chronic shortage of existing and resale housing inventory means that homebuilders will be in a strong position for years. In August 2023, there were 46% fewer active home listings compared to August 2019. The lack of resale inventory has pushed new home builders' biggest competitors out of the way. Combined with price adjustments and incentives from builders, this helped new home sales increase 31% year-over-year according to Census data. Strong demographic demand from Millennials and Gen Z entering the market, combined with little to no housing supply, means buyers will keep adjusting to higher mortgage rates, and sales will remain robust.
