Your Money Minute Homebuilders Cutting Prices to Move Homes 7/31/25
Jul 31, 2025
Homebuilders are slashing prices to attract buyers, grappling with a staggering shortage of 7 million homes in the U.S. The discussion highlights how high interest rates and rising material costs are challenging builder confidence. Listeners learn about the implications of these price cuts on the housing market and what it means for potential buyers navigating this unprecedented landscape.
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High Demand Meets Affordability Crisis
- The U.S. needs about 7 million new homes to meet current demand.
- Builders are cutting prices extensively because many buyers cannot afford current home prices.
Consider New Construction Homes
- Consider buying newly built homes as builders are heavily discounting prices.
- Look for deals in new home construction amid current market conditions.
Builders Face Systemic Challenges
- High interest rates and tariffs on materials hurt builders' profitability.
- Builder sentiment remains negative for 15 consecutive months due to affordability issues.