The housing market is looking up following a surge in new home construction. According to the US Census Bureau, housing starts, which measure the number of single-family homes and apartment buildings being built, jumped by nearly 20 percent in December.
The rise in new home construction bodes well for the housing sector, which has been plagued by rising prices, tight inventory levels, and depressed wages. The increase in residential construction brings much needed relief to an ailing housing market, providing more housing options for buyers.
The strong December showing is likely due to a combination of factors. Homebuilder confidence remains high, as evidenced by an increase in building permits. Lower mortgage rates are also enticing builders to increase construction activity. And the Trump administration’s aggressive deregulation agenda has made development more appealing to those in the homebuilding industry.
The uptick in construction comes at a time when rents and home prices are rising rapidly. As more inventory comes onto the market, it could help ease the strain on buyers who are struggling to keep up with spiraling prices.
Moreover, the increase in construction could lead to more jobs in the coming months. Construction is a major job creator, and more building means more employment opportunities. This could be a boon to the economy, as well as to markets where construction activity is lagging.
With the latest figures in hand, it appears that the housing sector may be on the road to recovery. Increased construction is an encouraging sign that the market will eventually recover and become more affordable for the average homebuyer. As the new year begins, the industry is cautiously optimistic about the possibility of a housing resurgence.
Jump Into the Housing Market: New Home Construction Soars, Raising Optimism!
