Business

New-home shortage frustrates Treasure Valley buyers

New homes in the Avimor subdivision sell for $200,000 to $300,000. Half-acre and slightly larger lots sell for $70,000 to $80,000. Construction began in 2008 but was halted in 2009 because of the recession. It resumed in 2011.
New homes in the Avimor subdivision sell for $200,000 to $300,000. Half-acre and slightly larger lots sell for $70,000 to $80,000. Construction began in 2008 but was halted in 2009 because of the recession. It resumed in 2011. Boise State Public Radio

The Treasure Valley housing market has come off its hottest summer in years. In July, Ada County home sales were up nearly 40 percent over July 2012. The average price was up by about 20 percent.

The stats all points to a market that's recovering from the housing bust of a few years ago. But there's one part of the industry that hasn't been quick to recover: new-home construction.

When the housing market was at its worst, a glut of new homes made it a buyer's dream. "At its height we had over 5,000 homes actively listed for sale here in the valley," says Marc Lebowitz, the head of the Ada County Association of Realtors. "By January of this year, we had about 1,600."

Lebowitz says what was once an excess of homes for sale has now flipped and turned into what people in his line of work consider a shortage.

Read the full story on the Boise State Public Radio website.

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