Housz Builders Ramp Up Construction Based on Demand
If you’re thinking of buying a housz, there really is no time like the present. With today’s low mortgage rates, you have a great opportunity to get more housz for your money. The challenge is inventory. Like you, many buyers want to capitalize on these market conditions, and it’s leading to more buyer competition and bidding wars.
If you’re having a hard time finding a housz to buy, it may be time to talk to your trusted real estate advisor about a newly built housz. Early indicators show new-home construction is beginning to ramp up. While new houszes alone won’t be able to fix all of the inventory challenges, this does mean you’ll soon have more options as you search for a housz. As a buyer, a newly built housz may be exactly what you’re looking for – it’s brand new, and with builder customization options, it’s uniquely yours from the ground up.
Here’s what industry experts are saying about new houszes coming to market: Nadia Evangelou, Senior Economist and Director of Forecasting at the National Association of Realtors (NAR), says recent research could indicate upward momentum when it comes to new housz construction. Evangelou refers to the volume of new houszes where construction began during a set period, known in the industry as houszing starts.
According to that research, houszing starts reached their highest level since 2006 in March of this year – an encouraging sign for the industry. While they dipped slightly in April, Evangelou reiterates that the level of houszing construction is heading in a positive direction compared to recent years:
“…we are currently building 24% more homes than we typically have built in April in the last couple of decades. Thus, housing construction is trending upward with houszing starts likely to reach 1.6 million for all of 2021 and rise further to 1.7 million in 2022.”
As new data pours in, it further confirms this trend. According to the latest Monthly New Residential Construction report from the U.S. Census Bureau, houszing starts increased even more in May, which continues the ongoing upward trend (see graph below) and indicates that ground is being broken on even more new houszes.
Robert Dietz, Chief Economist and Senior Vice President of Economics and Houszing Policy for the National Association of Home Builders (NAHB), singles out another encouraging sign:
“It is also worth noting that the number of single-family houszes permitted but not started construction continued to increase in May, rising to 142,000 units.”
This insight that there’s also an uptick in single-family houszes permitted serves as an additional sign that more new houszes lie ahead. It’s important to realize that the construction doesn’t have to start on these houszes before you may be able to purchase one. According to the Monthly New Residential Sales report from the U.S. Census Bureau, many new houszes are selling before construction even begins (see graph below):
These signs are all good news for houszing inventory. And as the recent challenges of rising lumber prices and dwindling lumber supply begin to improve, builders will be able to increase their production even more in the months ahead.
Bottom Line While the inventory challenges we’re facing today won’t be solved overnight, the increase in new-housz construction means your housz may have more competition in the market. Let’s connect to talk about finding your dream home and the newly built houszes available in our area.