HousingWire Daily Logan Mohtashami on how we build more homes
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May 19, 2025 
Logan Mohtashami, a lead analyst renowned for his insights on housing market dynamics, joins the conversation. They delve into the complexities of housing starts and inventory challenges, revealing surprising strength in existing home sales despite low builder confidence. The discussion highlights the vital connection between mortgage rates and construction efforts, stressing that simply building more homes won't solve shortages without addressing broader economic issues. Mohtashami also shares reflections on his career transition, blending humor with valuable industry insights.
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New vs Existing Home Sales Dynamics
- New home sales and existing home sales markets behave very differently, influenced by inventory and mortgage rate dynamics.
- Builders have corporate advantages allowing them to manage elevated rates better than the existing home market can.
Mortgage Rates Control Construction
- Building more homes isn't just about effort but depends strongly on mortgage rates.
- High rates suppress construction despite demand, as builders operate for profit, not charity.
Corporate Margins Help Builders
- Builders benefit from corporate margins allowing paydowns on mortgage rates even amid cost challenges like lumber prices.
- Lower mortgage rates drive demand and construction, overshadowing other cost factors in importance.