Skip to content

GTIS’s Shapiro Sees Homebuyer Challenges Getting ‘a Lot Worse’

Higher mortgage rates and rising building costs are pushing cash-strapped US consumers out of the market.

US homebuilders face rising costs and delays obtaining materials to finish construction. 

US homebuilders face rising costs and delays obtaining materials to finish construction. 

Photographer: Bing Guan/Bloomberg

Rising mortgage rates and supply-chain disruptions have begun to weigh on the US housing market, but GTIS Partners President Tom Shapiro says the full impact of worsening affordability hasn’t hit yet. 

“The crystal ball says it’s going to get a lot worse,” Shapiro said Friday in an interview with David Westin for Bloomberg Television’s “Wall Street Week.” “I think we’re going to start to see the slowdown come in the next couple of quarters.”

GTIS has investments in roughly 80 homebuilding projects across the country, giving Shapiro a view on consumers’ changing behavior. Rising costs have pushed the firm to go deeper into its waiting lists to sell homes, Shapiro said, and buyers are opting for smaller, simpler properties.