How the Surge in New Construction Concerns You, The Buyer

After initial concerns over the construction of new homes at the start of the pandemic, there has been an unprecedented increase in new homes' construction, especially single-family homes. 

This trend continues to rise steadily and is surprising even analysts. 

As the pandemic drags on, more and more families realize that they need more from their homes than before. At the same time, employers and employees alike are adapting to and favoring remote working, which enabled an exodus from Urban areas. The result? A complete and growing shift in geography and demand has caused a lower inventory than usual. 

And low inventory means higher competition in prices. 

This is what Joel Kan, associate vice president of economic and industry forecasting at the MBA, calls a 'pinch point,' specifically for first-time home buyers. The influx of activity from this group is also pulling their goal of buying further out of reach. 

A look at the numbers helps us understand the magnitude of growth in this market. 

According to the U.S. Census Bureau, construction increased by 5,8% in December 2020 over only one month from November 2020. 

Permitting for new homes also went up by 1.71 million, representing a 4.5% increase from November to December. 

Since January 2021, growth is still strong. New construction is emerging as the solution to the problems created by a truly remarkable year where Real Estate became a considerable focus in transforming priorities. 

Yes, turning to construction contributes to the recovery of housing starts. And it offers so much more in terms of personalization and having your brand new home. Get in touch with me, and let's discuss how a newly constructed home could be the solution for your family's needs!