How High Gas Prices Hurt Homebuilders
Gasoline prices that are 40% higher than a year ago are adding to the housing market’s troubles by straining potential first-time buyers, who tend to buy homes at the edge of town and have long commutes, according John Burns Research and Consulting.
The real-estate consulting firm said builders and sales agents that it has surveyed say high fuel costs have slowed business and soured already poor market sentiment heading into the spring home-buying season. The problem is most acute among first-time buyers, who besides usually having the least amount of money to spend, tend to house hunt in the new subdivisions at the edge of urban areas.
