After surges in home buying last year, home construction had some trouble keeping up.October especially saw construction slow. Low interest rates and low unemployment rates meant many Americans bought their first homes, upgraded to new homes, or signed leases. Demand was up and supply was low. However, the pace of homebuilding jumped in November. Apartment construction in the Midwest and the South boosted building to help it bounce back after a slower October. Construction of single-family homes also improved- it even hit an 8 year high!
Construction of both apartments and single-family homes spiked up 10.5 percent last month, according to the Commerce Department. The pace for construction is now at an annually adjusted rate of 1.17 million homes.
Highest Single-Family Home Construction Since 2008
Last month, construction for single-family homes rose 7.6 percent to 768,000, the highest it has been since January 2008. Construction of multi-family complexes like apartments also rose, 18.1 percent.
Rates of building permit buying indicate that construction will continue in coming months. They rose 11 percent in November.
“An upward trend in total housing construction appears to be re-emerging, following the slowdown in the summer,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics.
Michelle Meyer, an economist at Bank of America Merrill Lynch, estimates that housing starts will average 1.28 million in 2016 and 1.4 million in 2017.
Builder sentiment for home construction has been high throughout 2015 as well. The National Association of Home Builders/Wells Fargo builder sentiment index released Tuesday showed sentiment at 61. Readings above 50 show that builders view construction conditions as good.
Miami has many projects under construction now, and RE/MAX Paradise agents are experts in helping you pick out even pre-construction homes. Our Miami Pre-Construction Center allows you to compare and contrast home construction projects happening in Miami. Please feel free to set up a pre-construction consultation with one of our agents today to help find the best new home for you!