Three Charts That Show the Soaring Backlog of Unbuilt Homes

There are backlogs and shortages everywhere, and one of the areas where it’s most pronounced is in housing. On Tuesday we learned that the backlog of unbuilt homes — those that have been sold, but construction hasn’t even started —  surged over 16% in the last month.

Of course, different homebuilders are behind by varying degrees.

Rick Palacios Jr. of John Burns Real Estate Consulting sent me three charts which illustrate the state of the industry and show how much the builders are falling behind.

The first simply shows the year-over-year change in backlogs by builder. As you can see, even the smallest backlog growth on the list is Lennar’s 25% increase:

Three Charts That Show the Soaring Backlog of Unbuilt Homes

Next up a look at the industry over time:

Three Charts That Show the Soaring Backlog of Unbuilt Homes

And finally, the most staggering chart, perhaps, is the percentage of homebuilder backlogs that are getting worked through each quarter. Falling off a cliff:

Three Charts That Show the Soaring Backlog of Unbuilt Homes

We know everything is scarce in housing: lumber, windows, cabinets, labor, and land. These charts demonstrate the consequences nicely.

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