Here’s how just 1% more home construction could ease the housing supply crunch

Stop us if you’ve heard this one: There isn’t enough inventory in the housing market.

It’s a well-worn refrain, but a new analysis from Trulia offers a conclusion so simple it seems silly. Too little fresh supply — new homes being built — is far and away the single biggest contributor to the meager level of housing inventory.

Anyone keeping tabs on the housing market is familiar with the low-construction theme. While the pace of new-home sales has perked up over the past few years, they still represent only about 69% of their long-run sales pace.

Source: MarketWatch

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