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More consumers are looking to buy a home than ever before, according to recent data from Redfin. And while new home sales are indeed picking up — data from the U.S. Census Bureau showed January's new home sales rate was 5.6% higher than a year earlier — new home construction still remains well below its pre-recession peak. The following are six factors that could hamper efforts to boost new home construction.
Land costs are rising
Following the financial crisis, homebuilders were able to scoop up cheap, empty lots as land prices tanked. Since then, they've built on most of those lots, and buying new lots to fuel further construction is far more expensive today than a few years ago.