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New Home Construction Ends The Year Strong

The number of homes available for sale has been lower than normal for a while now. In many markets, there aren’t enough homes for sale to meet buyer demand, and – since there are more buyers than available homes – prices and competition continue to rise. In short, more new homes are needed. So it’s encouraging that the most recent residential construction report from the U.S. Census Bureau and the Department of Housing and Urban Development shows more new homes are under construction and permits to build are also on the rise. According to the report, building permits are now 8.5 percent higher than they were last year at the same time. Additionally, the number of new homes that began construction in November was 12.8 percent higher than November 2019. It marks the seventh-consecutive month that single-family home construction has increased. In other words, new home construction is accelerating, even as the broader economy slows. That bodes well for the 2021 housing market, as an increasing supply of new homes will help bring balance to the market and moderate any future home-price spikes. (source)