In this video, I'll look at one of the leading indicators of the housing market, lumber prices.
The slowdown in the housing market is making itself apparent, as lumber pricing has fallen to its lowest level since June 2020. Prices were down 64% in 2022.
Reports show that Builder confidence is down again for the 11th straight month as of November. Coupled with year-over-year home sales being down 28%, you can see that less new homes are going to be built.
In an environment where there is still a housing shortage and affordability issues, you can easily see where demand for multi-family and self-storage would still continue to see a lot of rent growth pressure as individuals elect to put off home purchases, rent for the foreseeable future and put their excess stuff in storage. The key is to find some of the great markets that have substantial in-migration and housing shortages that will take years to unravel.
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