“It’s crazy. There is no inventory,” the CEO of KB Home told CNN Business.
But this one-two punch of very low supply and roaring demand is suiting homebuilders just fine.
“This is the best housing market I’ve seen in my career,” Mezger said. “It’s a good time to be a homebuilder.”
“There isn’t a city we’re in where I would say it’s a tough market,” Mezger said.
It’s the polar opposite of what the company faced during the subprime bust that began around 2007, when the housing market was gripped with a massive oversupply problem that took almost a decade to correct. Construction of new homes collapsed in the aftermath of that crisis and never recovered. The supply of new homes remains very low today.
“We’ve been under-building for the last 15 years,” said Mezger.