Lack Of Inventory Helps Drive New-Home Prices To Record Highs

Zillow reports that the number of new homes built each year has steadily increased, but is still well below historical norms. Consequently, buyers competing for the limited supply of listings have caused premiums on newly built homes to reach record levels. The number of new housing starts “fell off a cliff” following the housing collapse, says Zillow data scientist Jamie Anderson, from almost 2 million completed homes in 2006 to just 600,000 by 2011.

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