There is never an “inventory challenge” when a business plan is focused upon new home construction.

It has been argued (by some) that an industrywide over reliance on selling traditional move-in ready home resales, with a lessened focus on creating more housing stock – i.e.: an industry reliance built mostly upon selling move-in ready homes which are already built, which are already owned, and which are already lived in – is part of our housing inflation challenge today (as it is too, to reduced buyer demand).

An industry model, and an over-reliance, on selling predominantly move-in ready home resales, coupled to a potential lack of focus on, a lack or prioritizing for, and a lack of specialization by professionals in, creating more housing stock that can be added to the market (affordably) every year, then made available to a higher number of home buyers. Facilitating an ongoing national affordability-in-housing challenge. Creating inventory is the solution, whereas ignoring the creation of inventory further contributes to the housing inflation problem we face. 

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Author: Ted Ihde

Ted is a real estate broker, a real estate developer as well as co-CEO of Team With Heart.