Builders Are Pulling Back-Even With a Housing Shortage
Jan 30, 2026
Discussion of why builders are slowing construction despite a housing shortage. Examination of rising insurance, HOA fees, labor and financing costs squeezing affordability. Exploration of phased development, builder financing strategies, and how construction debt and land costs shape supply. Consideration of regional insurance and utility impacts on where to buy or invest.
31:30
forum Ask episode
web_stories AI Snips
view_agenda Chapters
auto_awesome Transcript
info_circle Episode notes
insights INSIGHT
Builders Only Build When The Math Works
Builders will only build when the math works between construction costs and buyer affordability.
High construction debt and required incentives are forcing builders to slow or phase projects.
question_answer ANECDOTE
Big Employers Create Local Housing Booms
The Taiwan Semiconductor plant near Phoenix sparked huge local demand and drove land and home values up.
Ken uses this to show that targeted job growth creates hot pockets even when builders broadly pull back.
insights INSIGHT
Price Rise Fueled By Low Rates And Shrinking Supply
National home prices jumped about $100,000 from 2019 to early 2026 largely because supply ran short and rates fell.
Without significant new supply, prices are unlikely to fall much despite other cost pressures.
Get the Snipd Podcast app to discover more snips from this episode
Ken & Danille McElroy, break down why builders are pulling back even as the housing shortage worsens - and how rising insurance, HOA fees, labor, and financing costs are quietly crushing affordability. If you’re buying, investing, or wondering why prices won’t come down, this conversation explains what most headlines miss.
• • •
If you're an accredited investor and are interested in learning about opportunities to invest with Ken follow this link: https://mccompaniesinvest.com/knowmore
ABOUT KEN: Ken is the author of the bestselling books The ABC’s of Real Estate Investing, The Advanced Guide to Real Estate Investing, and The ABC’s of Property Management. With over two decades of experience in real estate investing, Ken McElroy is passionate about sharing the good life by helping real estate investors grow and prosper. This podcast is a place for Ken to discuss numerous topics connected to real estate investing, including finance, budgeting, the entrepreneur mindset, and creating passive income. Ken offers a wealth of personal experiences, practical advice, success stories, and even some informative setbacks, all presented here to educate and inspire. Whether you’re a new or seasoned investor, the information and resources on this channel will set you on a path where you and your investments can thrive.
Ken's company: https://mccompanies.com
• • •
DISCLAIMERS: Any information or advice available on this podcast is intended for educational and general guidance only. Ken McElroy and KenMcElroy.com, LLC shall not be liable for any direct, incidental, consequential, indirect, or punitive damages arising out of access to or use of any of the content available on this podcast. Consult a financial advisor or other wealth management professional before you make investments of any kind.
Although Ken McElroy and his affiliates take all reasonable care to ensure that the contents of this podcast are accurate and up-to-date, all information contained on it is provided ‘as is.’ Ken McElroy makes no warranties or representations of any kind concerning the accuracy or suitability of the information contained on this podcast. Any links to other websites are provided only as a convenience and KenMcElroy.com, LLC encourages you to read the privacy statements of any third-party websites. All comments will be reviewed by the KenMcElroy.com staff and may be deleted if deemed inappropriate.
Comments that are off-topic, offensive, or promotional will not be posted. The comments/posts are from members of the public and do not necessarily reflect the views of Ken McElroy and his affiliates.
Ken McElroy Show