The Blubber

Lennar Mortgage, the financing division of Lennar, the second-largest homebuilder in the U.S., has had Escobar on its team since 2002.

‘Enough is enough’
Escobar’s remarks reflect concerns voiced by the housing industry, especially builders, about how low inventory has driven up home prices.

Housing costs have risen sharply, with home prices reaching new peaks and 30-year mortgage rates nearing an average of 7%.

Escobar noted that the U.S. faces a 1.5 million home shortage and that the current housing supply isn’t keeping pace with household growth.

“Years of excessive regulation have made it incredibly challenging to build new homes and renovate older ones,” Escobar said in prepared statements. “For many small builders, it’s now almost impossible. And as the supply of new homes declines, prices of existing homes climb even faster.”

She highlighted zoning regulations, which restrict housing development in many areas. About 75% of residential land in the U.S. is zoned for single-family homes. A 2021 study by the National Association of Home Builders found that government regulations add an average of $94,000 to the price of a new home.

“Labor and material costs have also surged by 31% since the start of the COVID pandemic,” she added.