The problem is there is not a lot of fat between construction costs and retail pricing right now. Small time custom home builders (like myself), are pretty much sitting on the sidelines, or building for clients at cost plus a percentage. The cost of building, right now in our area, is from $190-195sqft. 1450sqft. starter homes with single car garages, sitting on $10k lots in mixed housing (stick built homes and mobile homes) are $250k. We are closing on one today. It's a young couple with a combined income of a little over $100k, and it was still tough to get them qualified.
I paid $117/yard for concrete in 2020. It is hovering around $200/yard currently. Until material costs come down, building will lag behind, and the units that are being built are still unobtainable to most young families at current interest rates. Doubling interest rates basically halved what potential home buyers are able to qualify for.
CHIEF