Chief Financial Officer (CFO) Jeff Kaminski of KB Homes, the eighth largest homebuilder in the U. S. says the new housing crisis is being caused by the lack of homes, which in turn raises prices of existing homes, pricing many people out of the market.

First-time KB home buyers in 2008 and 2009 accounted for 60 to 70 percent of sales, but that number has dropped to 50 percent, reports yahoofinance. It’s not so much slow wage growth, according to Kaminski, it’s that people do not want to be tied to credit.

In addition, he says the price point for first-time homebuyers has increased by $100,000 because new housing starts are low, driving up prices. Further, people moving to urban areas seeking work have driven demand n city centers, forcing prices up as well, as MHProNews has learned.

However, he states as the labor market continues improving, people drawn to city centers may have more desire to move to suburban areas where there are more homes available.

MHLivingNews.com publisher L. A. “Tony” Kovach noted that the challenges KB’s executive points to offer potential opportunities for manufactured housing pros. ##

(Photo credit: Champion Homes)

Article submitted by Matthew J. Silver to Daily Business News-MHProNews.