While high housing demand and the housing crisis are not news to anybody, it seems the homebuilding industry is finally taking notice.
The latest Census residential construction report shows that housing starts increased by 11% year-over-year in September, with over 1.1 million single-family homes and 295,000 units breaking ground. As reported by The Real Deal, this increase in construction reflects stronger homebuilder confidence. This also comes after August saw a 5% drop in housing starts compared to July, when housing inventory hit a 40-year low.
National Association of Realtors Chief Economist, Lawrence Yun, released a statement in response to the news, noting that, in addition to giving prospective buyers more options, increased housing production will also be a boon to the economy and employment.
“A gain of 8.1%* from a year ago to 1.415 million new unit production (annualized) is good but far more units are needed,” Yun stated. “Rising lumber prices and a shortage of construction workers could present challenges. The country needs to boost vocational training to move workers who lost jobs in retail, restaurants, and hotels into the higher paying construction industry.”
*The 8.1% refers to the year-over-year increase in housing permits.