Dive Brief:

• A National Association of Realtors study found that "insufficient" new home construction in the majority of U.S. metro areas is exacerbating the growing problems of a lack of available inventory and "unhealthy" home price growth.
• The NAR study compared the number of newly employed workers with the volume of new single-family and multifamily home construction in nearly 150 metro areas. The group determined that homebuilding is lagging behind employment gains in about two-thirds of those areas.
• The metros with the largest gap between homebuilding and job growth were San Jose, CA; San Francisco; San Diego; New York; and Miami.

Dive Insight:

NAR's chief economist Lawrence Yun said, "Our research shows that even as the labor market began to strengthen, homebuilding failed to keep up and is now contributing to the stronger price appreciation and eroding affordability currently seen throughout the U.S."

A lack of affordable inventory has been one of the main obstacles to stronger growth in the residential industry, as buyers frustrated by a lack of starter home options remain renters.

Last month, after the NAR reported that rising home sales and tight for-sale inventory caused home prices to soar in nearly every U.S. metro area in the second quarter, Yun warned the trend was contributing to the growing "inequality" problem in the nation.

With Wednesday's report, Yun urged builders to "begin shifting their focus from apartments to the purchase market to make up for lost time." If they continue on the current path, the lack of inventory will only get worse, and prices will continue to rise — keeping potential homebuyers far away from the market.