New Construction

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We have all seen the influx in the real estate market, so it comes as no surprise to see that new build construction is at the highest level it has been in over a decade for single-family homes. With people spending more time at home folks are moving from the big city high-rises to the rural area single-family home and the demand is greater than the inventory. The U.S. Census Bureau reported on Thursday that the U.S. home builders started construction on homes at a seasonally-adjusted annual rate of 1.67 million in December, representing a 5.8% increase from the previous month’s figure.

Overall there has been a dramatic increase in building permits and housing starts across the country, with the exception of the Northeast. On a monthly basis single-family starts were up 12% and single-family permits were up 7.8%. In La Plata County we saw 145 homes sold in December which is a 67% increase from the year before and the average sold price increased by 9.9% from 2019, which shows a very strong demand from buyers.

The future looks bright for builders, but with the rising cost of land and building materials some may be sceptical. However, the underlying need for homes is still there, which should keep new development busy for some time to come. “Housing starts have recovered and were at their strongest pace in more than 14 years. Amazing, considering the COVID-related downturn in the spring. There aren’t enough homes in this country to go around, and we need a long-lasting surge of construction to meet demand,” said Holden Lewis, home and mortgage expert at personal-finance website NerdWallet.