New Home Construction Demand Continues to Drop in 2022

The National Association of Home Builders (NAHB) first quarter Housing Trends Report reported that new construction demand has returned to pre-pandemic levels of 19% after reaching a peak of 42% in Q4 2020. Due to a 31% rise in construction costs, fewer potential buyers across all geographic regions resulted in less demand for new construction. The Northeast saw the largest drop in demand, falling 41 percentage points to 19%. See NAHB