Tag Archives: Housing Starts

According to Fannie Mae's Economic and Strategic Research Group expectations for Q1, the increase in the sales pace from the end of 2022 to the beginning of 2023 revealed that homebuying demand remains buoyant and was unexpectedly responsive to small declines in mortgage rates.

“Single-family housing permits, a leading indicator of future starts, also increased 7.6% compared with the previous month. The uptick in single-family housing permits and starts aligns with the recent increase in homebuilder sentiment,” said First American Deputy Chief Economist Odeta Kushi.

According to a new report from Realtor.com, U.S. housing markets continue to struggle with a significant shortage of new homes, a result of more than a decade of under-building in response to population growth.

The rise in mortgage rates and inflationary concerns are impacting new residential construction, as borrower costs continue to force many prospective buyers to the sidelines.

New Census data has found that a spike in the cost of raw materials and continued supply chain issues has driven up the number of home construction projects that were authorized but not started.

Despite lingering supply chain concerns, there were 811,000 single-family units under construction in March, marking the highest level since 2006.

Mortgage rates have soared to levels last seen prior to the pandemic, as high inflation and strong consumer spending contributed to this upward rate drive.

New construction activity rolled onward in November, as a rise in homebuilder sentiment looks to even the supply to demand imbalance in 2022.

As the nation continues to struggle to keep up with housing demand, more Americans are deciding to ride out the storm and not give into exorbitant prices on limited inventory.

Despite the rising cost of building materials and poor February weather, housing starts took off in March reaching new 15-year highs.