Why it’s so hard to build a new home today
Much of the economy has recovered from the Great Recession, but a key segment has not.
While the economy has been improving and the housing market has been recovering, the home construction industry has not done either, leaving limited options for those looking to build a new home.
According to The Boston Globe, the number of home-building companies has dropped pretty drastically – in 2007 there were 98,060 home building companies nationally, while by 2012 that number fell to 48,557.
Massachusetts was not exempt from this change.
The Globe notes:
“Membership in the Home Builders and Remodelers Association of Massachusetts has plunged to about 1,500 companies, a 44 percent drop from the prerecession peak of 2,700 in 2006. During that period, membership at the National Association of Home Builders dove 47 percent to about 30,000 companies from 57,000.’’
Many of the residential construction companies were “mom-and-pop builders,’’ the Globe said, which had a particularly tough time making it through the Great Recession.
High construction costs and some housing restrictions throughout the state are making prices in the area soar and slowing construction, making it even harder for builders to hang out to their businesses.
Read the full Boston Globe story here.
Related: Neighborhoods where homes are selling fastest
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