For a housing market in need of more new homes going up for sale, relief may be on the way as a new report shows that construction of new single-family homes is still on track to see a sizable increase over last year.
According to a new report from the Department of Housing and Urban Development and the Census Bureau, new single-family home construction remained stable in September. The stability comes at a good time as new home demand recently rose for the first time since March.
“Single-family construction continued along recent, more sustainable trends in September,” National Association of Home Builders Chairman Chuck Fowke said of the results. “Lumber prices have moved off recent lows, but the cost and availability of many building materials continues to be a challenge for a market that still lacks inventory.”
Beyond the stability seen in production lately, analysis from the NAHB shows that single-family home construction is up 20.5% year-to-date over last year.
NAHB Chief Economist Robert Dietz also notes that the number of units under construction is up significantly over last year, which should help alleviate inventory concerns.
“Builder confidence increased in October, which confirms stabilization of home construction at current levels,” Dietz said. “The number of single-family units in the construction pipeline is 712,000, almost 31% higher than a year ago as more inventory is headed to market.”
Once those homes hit the market, those looking for a new home should have more choices.