The U.S. housing market continues to show signs of improvement as new home construction jumped in April 2021. The seasonally adjusted annual rate of the total housing starts unexpectedly rose by 1.7 percent to a 1.74 million-unit pace, boosted by increased activity in the single-family housing sector, according to the U.S. Census Bureau. Building permits, a measure used to assess future activity, rose by 1.9 percent to a 1.77 million-unit rate in April 2021.
This news has raised hopeful expectations that the housing market recovery is here to stay. “That’s a great sign of the market’s willingness to buy new homes,” said Jim Spencer, senior homebuilding analyst at Moody’s Analytics. “The housing market is in the midst of a sustained recovery,” he added.
The rise in home construction is being attributed to the promise of low mortgage rates and new economic stimulus provided by the new federal administration. “The low mortgage rates, as well as an increase in demand due to the high number of households created by the pandemic, are driving the market’s recovery,” said National Association of Home Builders’ Chief Economist Robert Dietz.
The rising housing demand has helped to ease concerns about a possible inventory shortage. Builders have responded by increasing the number of starts for new single-family homes by 3.7 percent in April 2021. The rate of building permits is also up, indicating that production is likely to remain consistent in the near future.
The strong housing market is a bright spot during a time when the rest of the economy is still facing uncertainty due to the COVID-19 pandemic. Industry experts are hopeful that this optimistic outlook will spill over into other parts of the economy and help to stimulate further economic growth. “The surge in new home construction not only bodes well for the housing sector, but also helps to bolster the broader US economy,” said Dr. Mark Zandi, chief economist at Moody’s Economy.com.
The ongoing recovery in the housing market shows that there is cause for hope for a better economic landscape in 2021. This increase in new home construction is just one sign that the recovery may be here to stay.
The U.S. housing market continues to show signs of improvement as new home construction jumped in April 2021. The seasonally adjusted annual rate of the total housing starts unexpectedly rose by 1.7 percent to a 1.74 million-unit pace, boosted by increased activity in the single-family housing sector, according to the U.S. Census Bureau. Building permits, a measure used to assess future activity, rose by 1.9 percent to a 1.77 million-unit rate in April 2021.
This news has raised hopeful expectations that the housing market recovery is here to stay. “That’s a great sign of the market’s willingness to buy new homes,” said Jim Spencer, senior homebuilding analyst at Moody’s Analytics. “The housing market is in the midst of a sustained recovery,” he added.
The rise in home construction is being attributed to the promise of low mortgage rates and new economic stimulus provided by the new federal administration. “The low mortgage rates, as well as an increase in demand due to the high number of households created by the pandemic, are driving the market’s recovery,” said National Association of Home Builders’ Chief Economist Robert Dietz.
The rising housing demand has helped to ease concerns about a possible inventory shortage. Builders have responded by increasing the number of starts for new single-family homes by 3.7 percent in April 2021. The rate of building permits is also up, indicating that production is likely to remain consistent in the near future.
The strong housing market is a bright spot during a time when the rest of the economy is still facing uncertainty due to the COVID-19 pandemic. Industry experts are hopeful that this optimistic outlook will spill over into other parts of the economy and help to stimulate further economic growth. “The surge in new home construction not only bodes well for the housing sector, but also helps to bolster the broader US economy,” said Dr. Mark Zandi, chief economist at Moody’s Economy.com.
The ongoing recovery in the housing market shows that there is cause for hope for a better economic landscape in 2021. This increase in new home construction is just one sign that the recovery may be here to stay.
