New numbers from the U.S. Census Bureau and the Department of Housing and Urban Development show the number of new homes that began construction in July was 5.2 percent higher than the month before and 12.9 percent higher than last year at the same time. Among the gains, single-family home construction rose 2.8 percent month-over-month. The improvement is welcome news – as the housing market continues to add inventory, helping balance the market and provide home buyers with more choices. But while increased new home construction is good for buyers and the overall market, the gains were not evenly distributed. In fact, construction increases were seen mostly in the South, while the Midwest, West, and Northeast all saw declines from the month before. There are a number of reasons for this, including challenging affordability conditions, but the disparity is also a reflection of uncertainty in the market. That might explain why, though starts were up, permits for future construction remained relatively flat in July. (source)
