The Rise of Homebuilding: A Promising Outlook for 2024

The CEO of Howard Hughes predicts a "golden age" of new home construction in 2024, driven by falling mortgage rates and increased demand. Homebuilders are offering attractive discounts, such as mortgage rate buydowns, to entice buyers. However, the existing home market is expected to remain stagnant due to high borrowing costs, discouraging homeowners from selling. The supply-demand imbalance is projected to worsen, further driving demand for new home construction. Lower mortgage rates are needed to unlock existing home inventory, but experts only anticipate a slight easing of rates in the coming year.