New-Home Construction Jumps
Inventory has been a major issue in real estate, but it looks like home builders are picking up the pace.
In August, home builders started construction on homes at a seasonally adjusted annual rate of 1.63 million, which is a 3.9% increase from the month prior, according to the U.S. Census Bureau.
Most of the building is driven by multifamily construction activity. There were 20% more permits issued for multifamily projects in August than in July.
Construction is always a plus – but it’s also important to learn what part of the market it’s impacting. Builders are still having to deal with extreme prices in costs of materials, so they’re building more expensive projects to see a higher return of investment.
Experts are saying, however, that building permits are coming in hot, which likely means that home construction will continue to rise in other sections of the real estate market as well.
For more real estate news, stop by Pacific Alliance Title’s Blog.