New housing construction surges at end of 2014
Posted on Thursday, January 22, 2015 at 8:05:06 AM
New construction has been up and down over the past few years. Since the Great Recession, fewer homebuyers have been interested in moving in to a never-before-lived-in property. However, the recent economic surge has shifted that trend.
According to the U.S. Department of Commerce, total private housing starts increased 4.4 percent from November to December. Single-family starts also experienced an uptick, increasing 7.2 percent on a monthly basis.
David Crowe, chief economist for the National Association of Home Builders, was optimistic about this news.
"With overall starts ending the year above 1 million units for the first time since 2007, we expect this momentum to carry forward in 2015," Crowe said in a statement. "A growing labor market and strengthening economy will spur steady growth in single-family housing production in the year ahead."
While new homebuilding has improved through the end of 2014, one small segment of that construction - the custom home - has not. According to Zillow, the number of custom home sales have actually fallen since 2005. Now, it seems few buyers are interested in designing and building their own houses, opting for mass production and subdivisions instead.
No matter your choice, make sure you have the right residential financing in place before moving ahead with homeownership.