This podcast episode delves into the rollercoaster ride of the home building industry over the past two decades, highlighting the challenges faced and strategies implemented. After the 2008 financial crisis, the industry saw a cautious recovery, which was then shaken up by the pandemic. The pandemic brought extreme fluctuations, with sharp declines followed by a surge in demand due to people seeking more space. However, the housing boom ended abruptly in 2022 with rising interest rates, leading builders to adopt strategies like mortgage rate buy downs to make homes more affordable. Despite the challenges, the shortage of existing homes has fueled a demand for new homes, causing a "whiplash" effect for builders as they adjust to meet this need. The industry is currently navigating a shift towards constructing smaller, more affordable homes to address the shortage and remain optimistic about the long-term prospects of homeownership.
