Part 4/10:
Inventory levels tell a disturbing story as well. Builder inventory has surged by 21% year-over-year, and the months of supply have jumped significantly from 4.1 to 6.2 months. Moreover, hidden from the official data is what is referred to as “shadow inventory,” which includes over 15,000 units that builders have permitted but not yet started. When accounted for, the months of supply stretches to nearly 8.5 months, a level not seen since the last housing crisis.