Climbing Cost of Home Buying
Forecast for Record Construction in 1977
Home building has often been characterized as a boom-or-bust industry, primarily because it is so sensitive to the availability and cost of mortgage credit. The housing industry is currently pulling out of its worst slump since World War II, and home builders have predicted that a near-record amount of new construction will begin this year.1 But this optimism, though welcomed by the nation, does not necessarily extend to the various housing needs of the coming decade. Nor does the predicted increase in housing “starts” this year mean that more families will be able to buy new homes. Although the number of new homes may increase, so will the prices, and average-income families will continue to ...