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AI-driven wealth boosts luxury home prices while construction strains worsen

Luxury home prices have risen about 5%, while a roughly 4 million home supply deficit leaves new builds short as AI data centers compete for labor and materials.

Reported · Written up by our desk · Residential

HousingWire says U.S. luxury home prices have climbed about 5% as the AI boom has helped grow a new class of high earners and complex, high end housing demand.

At the same time, the outlet highlights that the broader market is stalling for average buyers due to a housing supply deficit of about 4 million homes, underscoring the difficulty of expanding new construction fast enough.

HousingWire also links construction bottlenecks to AI data center buildouts, saying both housing and data center projects draw from a limited pool of skilled labor and basic materials such as steel, iron, and lumber.

The outlet cites U.S. Census Bureau analyses that the construction industry is short around 500,000 workers, especially skilled trade workers, and warns that understaffing and legacy manual estimating tools can slow new builds and reduce bid accuracy, making it harder to close the housing gap.

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