Labour shortages threaten housing supply

DON HORTON, founder of America’s largest housebuilder, never thought he would have to turn away business in Texas. Until recently he could not build homes in the state fast enough. Now his firm is restricting sales as industry-wide shortages of labour and building materials such as timber slow construction and inflate costs. The combination of these constraints and surging demand for housing has led to staggering rises in house prices. According to figures published on August 31st the Case-Shiller national house-price index was 18.6% higher in June than a year earlier—the third record-breaking rise in as many months (see chart). But although the shortages of materials are expected to ease next year, skilled labour will be harder to find.