ExecutiveMessage
4 BuildersOutlook 2024Issue1
ExecutiveMessage
The outlook for 2024 ? It ’ s complicated .
The Biden administration doesn ’ t seem to get what an economic giant home building is . Day in and day out the struggles NAHB goes up against are going from bad to worse .
Ray Adauto
Executive Vice President El Paso Association of Builders
Some examples :
• The Fed didn ’ t raise the interest rates last time they met late last year , sending out indications of potential rate decreases in 2024 . Now the Fed has backed off any comment on reducing the rate , at least for now . Continuing federal spending isn ’ t slowing and inflation continues . I suspect we may see some rate reduction , but not to any impactful degree .
• The last ten out of eleven Fed jobs report have been presented then downgraded afterwards by the administration . Why put them out ? Probably trying to force a rate reduction from the Fed , but the kicker is inflation . Rate reduction and inflation are tied together .
• Word from NAHB that the Biden Administration has failed to make production of electrical transformers a priority , creating a backlog of these vital components . Who is not listening in Washington ? Can ’ t electrify , can ’ t occupy .
• Add this . Resale homes are still in short supply . In December the market inventory for El Paso was still a “ sellers ” market . Low inventory translates into consumers holding off buying new , the effects perhaps of the interest rates .
How our industry responds to the issues I ’ ve outlined here is actually how we will experience 2024 . It ’ s a complicated world as it is . Welcome to it .
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