A new survey indicates that the banks homebuilders look to when they are financing a building project continue to have very strict lending standards, preventing some construction plans from taking place.
The poll, conducted by the National Association of Home Builders' Economic and Housing Policy Group, found that more than half of single-family builders said they had decided to postpone development projects until banks begin lending more.
Bob Nielsen, chairman of the NAHB, said this could have a significant impact on the future health of the real estate industry, as builders won't be able to meet demand for new housing.
"Restoring the flow of credit to housing is critical for the industry to rebound, provide jobs and boost the economy," said Nielsen.
He added that a full-fledged housing comeback will not take shape until banks loosen their lending standards.
Many prospective homeowners have had a difficult time securing loans as well. Inaccurate or unfair marks left on credit reports can complicate matters further, which is why it's important that consumers review their financial histories before submitting their information to banks and other lenders.