Whether you're shopping for a new home or not, the number of new homes being built should matter to you as a home buyer – especially at a time when the inventory of homes for sale is low. That's because new home construction is the fastest way to add to the supply of available homes for sale, and more homes for sale means less competition among buyers and fewer price spikes.
In other words, new home construction can ease affordability conditions for all buyers, even ones shopping for an older home. That's why the latest residential construction numbers from the U.S. Census Bureau and the Department of Housing and Urban Development are good for buyers.
According to the most recent statistics, single-family housing starts were up 18 percent in November from the month before. When including multi-family construction, starts were up nearly 15 percent month-over-month and are now 9.3 percent higher than year-before levels. Put simply, new home construction is surging and that's a good sign that more supply and a calmer market may be on the way in 2024.
[Source: Census]
