8/10/2015 – A lack of supply drives up housing prices (Marketplace)

Home prices in the U.S. have risen consistently for the last three years. By that measure, the housing market looks pretty good, but the prices are being driven by a severe lack of supply. And that’s discouraging for many buyers especially in some of the hottest, markets like Denver.

The supply shortage is a problem for all types of housing for sale. Condos account for just 5.5 percent of all multifamily building in the first quarter of 2015 — That’s the lowest level since the Commerce Department began keeping track of that 41 years ago. Meanwhile, single family home construction is half of what it should be, according to Bob Denk with the National Association of Home Builders. Denk says changing that would require a seismic shift in the industry. That’s because skilled labor and lots to build on are in short supply.

Read the full article in Marketplace.