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But the boom doesn’t seem to be reaching some parts of the country.
Housing starts surged nearly 15%, blowing expectations out of the water. What does that mean for the future of the housing market?
Construction supports businesses throughout the supply chain and keeps the national housing deficit from growing.
Most new homes are going up in the South and states like Utah and Nevada, where homes are generally more affordable than on the coasts.
That’s because apartment developers have a lot more incentives to keep building right now.
This could be another indicator that things are cooling down, but home prices are still at record highs.
Home prices are at record levels, and mortgage rates are much higher now than they were six months ago.
Rents are up, providing builders an incentive.
As that omicron wanes and weather warms, analysts expect building to pick up. That doesn’t mean it’ll make a dent in the housing shortage.
Jerry Howard, CEO of the National Association of Home Builders, discusses the challenges facing his industry.
