HOME BUILDERS PESSIMISTIC BUT LUXURY HOUSING SHINES AMID SLOWDOWN...

The construction industry faces a squeeze as higher borrowing costs and inflation price out middle-income buyers, but developers building homes above $1 million are finding steadier demand from wealthy purchasers less sensitive to interest rate swings. While standard home construction has slowed considerably, luxury projects continue moving forward, creating a two-speed market where economic pressures hit average builders hard while high-end segments remain resilient. This divergence reflects how wealth inequality shapes housing markets—those with substantial capital can weather economic headwinds that stop ordinary homebuyers entirely.