New home builders are building less homes and they will likely continue. The lack of housing is a big problem in the US as the housing market forecast is that less and less homes are likely to be available for purchase each year. In Las Vegas there are a lot of home builders, but it is needed as 60,000 - 80,000 people a year are moving here.
Why are new home builders not building as many houses? It boils down to profits. Its more profitable for a home builder to build above median price homes instead of starter homes. Also many home builders were wiped out during the last downturn and they are more cautious this time.
Many home builders are cancelling construction because of high interest rates as well.
