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ORLANDO, Fla., Feb. 5, 2021 /PRNewswire/ -- Homebuilding experienced "a surprise year of growth" in 2020 despite the pandemic, but new home construction this year will be constrained by supply side factors like higher lumber costs, a shortage of lots and regulatory issues, according to Dr. Robert Dietz, chief economist and senior vice president for economics and policy for the National Association of Home Builders (NAHB). Dietz was one of several real estate economic experts who spoke to 424 Realtors® and attendees during Florida Realtors®' virtual 2021 Florida Real Estate Trends summit on Feb. 4.
He said, "We expect the COVID-19 crisis to continue through February 2021, with a 50% vaccination rate by the end of April and a 75% rate by the end of October – we anticipate accelerating economic growth later in 2021. The new-home construction industry will grow in 2021, but at a lower rate, especially as interest rates will trend higher with the recovery, thanks to aggressive action by the Federal Reserve. Housing affordability will be key – we risk pricing households out of the market due to rising interest rates and higher construction costs."