When the housing boom turned into a bust 10 years ago, it took out a good percentage of home building companies as well. Today, the number of members in the National Association of Home Builders has dropped 47% to 30,000 companies from its pre-recession peak of 57,000.
The Boston Globe's Jay Fitzgerald spoke with Moody's Analytics Chief Economist Mark Zandi on how the economics of home building aren't in the favor of most companies:
The economics of home building simply aren’t there for most industry players, especially for smaller contractors with limited access to capital, Zandi said. The main reason: tight construction financing. Banks, which absorbed big losses from construction loans during the recession, remain reluctant to lend for home building.
Head over to THE BOSTON GLOBE, to learn more about the disappearance of home-building firms in Massachusetts and across the nation: