KB Home's CEO predicts builders will dominate housing market due to limited inventory

KB Home CEO Jeffrey Mezger believes that homebuilders will continue to thrive in the housing market for years to come due to the chronic shortage of existing and resale housing inventory. The lack of inventory has led to increased demand for new homes, resulting in higher prices and strong sales. The scarcity of existing inventory has also prevented a significant decline in home prices, despite challenges to housing affordability caused by rising mortgage rates. Only one housing market, Austin, has successfully returned to pre-pandemic inventory levels, while other markets have experienced significant declines in available housing units for purchase.