The demand for housing is much greater than the supply at present. Analysts report another 50 percent increase is needed to satisfy current demand. The current new home construction rate is the 3rd highest it's been in the last 5.5 years. Current rate decreased slightly from last month.
Decline in new housing starts can be attributed some to cold weather, but more so to new construction loans being difficult to get. The smaller, local builders have been the countries primary resource for new home construction. With the difficulty in acquiring new construction loans the little guys are being shut out. Large builders have the means of funding these projects.
Economists say that the insufficient housing starts will likely continue the shortage in housing through 2014. Home and rent prices are, therefore, expected to rise in nearly all housing markets across the country.