Home prices will keep soaring through 2023 as construction will fail to meet demand, study says

Home prices will keep soaring through 2023 as construction will fail to meet demand, study says

Prospective buyers waiting for the housing market to cool down shouldn't hold their breath. Home-price inflation will slow from last year's peak of 11.4% but remain elevated as the market boom charges forward, according to economists surveyed by the Urban Land Institute in May. The estimates for average price growth in 2021 and 2022 were revised higher to 8.1% and 5%, respectively, and price growth is forecasted to reach 4% in 2023, landing just below the country's 20-year average but still outpacing broader inflation measures. ULI, which calls itself the world's oldest and largest network of real estate and land experts, surveyed 42 economists and analysts across 39 real-estate organizations from April 23 to May 7. Some of the inflation slowdown will be driven by a rebound in home supply, according to the survey. US home inventory tumbled to a record low in fall 2020 and has since retraced only a portion of the decline. And while housing starts surged in March, elevated lumber prices and lot shortages . Economists see single-family starts climbing to an annualized rate of 1.1 million by the end of this year and reaching 1.2 million in 2022 and 2023, according to ULI. That compares