close video NJ community turns to ‘creative solution’ to address home supply shortage: Lydia Hu
FOX Business’ Lydia Hu joins ‘Mornings with Maria’ to discuss home construction as it faces a shortage in supplies.
A New Jersey homebuilder is tapping into a creative solution to combat the persistent supply challenges plaguing the housing industry.
That creative solution happens to be duplexes; however, the potential fix carries its own set of obstacles.
In the community of Rumson, New Jersey, two homes can be seen being built on a single lot. It’s the first time in decades that a community like Rumson has seen what’s being attempted as builders find ways to increase the housing supply.
The builder behind the latest construction, Roger Mumford of Roger Mumford Homes, said it was "virtually impossible" to get work started as complications arose while trying to secure zoning approval for the development.
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"In this particular case, it required a settlement with Rumson and the Fair Share Housing Center to provide for low-and moderate-income housing at another location off site. So instead of one large home that was here, there are now 18 new homes, all of which are market rate," Mumford told FOX Business’ Lydia Hu. close video Real estate market’s ‘biggest takeaway’ is housing supply being restocked: Ralph McLaughlin
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Despite finding a workaround for the supply issues, zoning approvals and restrictions are not just hurdles in New Jersey but around the country.
The National Association of Home Builders (NAHB) proposed easing zoning regulations to increase housing stock and improve affordability.
The NAHB also recommended promoting careers in trades, eliminating excessive regulations that account for nearly 25 percent of the cost of a single-family home and ultimately fixing supply chains.
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Mumford as well as many other housing experts said that if the issues that are negatively impacting the industry are not addressed soon, the U.S. could see a shortage of homes for the next decade or more. close video Housing affordability crisis is a major problem for the US economy: David Bahnsen
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New home construction is predicted to increase, particularly if interest rates stay high and existing home inventory remains low. Single-family new builds are expected to increase by 4.7% in 2024. About 988,000 units will likely be built, the NAHB estimated.
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FOX Business’ Christopher Murray contributed to this report.