Supply Squeeze and Real Estate Strategies

The Supply Squeeze Isn't Over

June 23, 2026•1 min read

The Supple Squeeze Isn’t Over

Housing starts fell again in May, dropping to their lowest level since 2020. Fewer homes breaking ground today means fewer new homes available for sale in the months ahead—keeping inventory tight.

At the same time, demand remains strong. Household formations recently reached approximately 1.65 million, representing new households that will eventually need housing. We also saw buyers respond quickly when mortgage rates dipped earlier this year, highlighting just how sensitive demand is to even modest improvements in financing costs.

If geopolitical tensions ease and bond yields continue to improve, mortgage rates could move lower. That combination of improving affordability and limited new construction could bring more buyers back into the market while inventory remains constrained.

For buyers who have been waiting on the sidelines, today's market may offer an opportunity before competition increases again.

Jennifer Blau

Jen brings a wealth of experience from the financial services industry, starting as a Certified Financial Planner and later earning her MBA in Finance from Duke University. After working in Corporate Bond Sales and raising three daughters, she joined Team Pogue Real Estate, where she’s spent over a decade building community relationships. With a deep understanding of both finance and family life, Jen offers a personalized, thoughtful approach as a mortgage loan originator—committed to helping families find the right path to financial stability and homeownership.

Back to Blog