Recent data from the U.S. Department of Housing and Urban Development (HUD) shows that new home construction jumped sharply in the second quarter of 2021, suggesting that the housing market may be on the upswing. Single-family housing starts rose 7.2% in June, while home completions were up 8%. The data also showed that in the first half of 2021, single-family housing starts were up 8.4%, the strongest six-month growth rate since the Housing Market Crash of 2008.
The numbers suggest that the US housing markets are seeing a resurgence, with only modest declines in new home construction throughout most of 2021. The jump in new home construction has been fueled in part by historically low mortgage rates and an increased appetite from buyers who are looking for new homes. At the same time, changes to the tax code have also made building a new home more attractive to many buyers.
The rise is good news for the housing market and for potential homebuyers. It suggests that it may now be a better time than ever to buy or build a new home, as more sellers are likely to enter the market both by choice and out of necessity. The increased inventory is also good news for buyers who were previously unable to find homes to purchase due to a lack of homes on the market.
Overall, the surge in new home construction is a positive sign for the housing market and suggests that better days are ahead. Although the housing market has a long way to go before it has fully recovered from the Housing Market Crash of 2008, the increase in new home construction is one critical step in getting there.