WASHINGTON (WDVM) — Construction isn’t meeting the demand for new homes built in northern Virginia, and this trend can be seen going back a decade.
Homes are selling for more and faster than before because there’s a large demand and not enough supply. New construction has not met the level of demand cutting back as far as 2009.
Unfortunately, it was right before COVID hit where the market started seeing builders beginning to reach that level of demand. However, then they ran into the pandemic quarantine and eventually a supply shortage.
Ryan McLaughlin, CEO of the Northern Virginia Association of Realtors, says there’s been a nationwide shortage as well.
“One of the statistics that we track is new construction,” said McLaughlin. “And, you know, new construction and I’ll just give you a nationwide pick up that there need to be about 1.5 million new, new homes built per year to meet demand, and new construction has not met that level of demand.”
He says they’re starting to see some relief in supply pricing as lumber cost has recently gone down in the past few weeks.