The U.S. has entered a market defined by low supply, high demand, and rising inflation. The supply chain has been disrupted across all sectors as companies try to keep up with consumer demand with a tight labor market and high material prices. As policymakers and companies look for solutions, consumers are becoming more and more burdened by increased pricing across all industries.

 

The real estate market has been heavily affected by supply chain constraint. The decrease in production and increase in demand caused material prices to skyrocket as companies are competing for a limited supply in building materials. This disruption caused a chain reaction, entering real estate through decreased manufacturing of building materials, which in turn slowed development and increased competition between established assets, driving prices to historical highs. In this report, Matthews™ examines the supply constraints happening in the market.