June of 2012 has shown a serious climb in the frequency of
housing starts in the United States. With a 6.9% increase in June
to a seasonally adjusted 760,000, no higher level had been achieved
over the past three and a half years since October of 2008,
according to the Commerce Department. Just on our local level in
Massachusetts, we reported in a past blog the details about how
single-family and condominium pending home sales
increased for the fourteenth straight month in a row looking at
year-over-year monthly statistics. Clearly, it is not just our
markets experiencing such positivity when it comes to Real
Estate, and that is a wonderful thing for the nation as a
whole.
Single-family home statistics exceeded experts
expectations for the month of June when this segment of the market
also improved by 4.7% to 539,000 new homes. This, it was then
determined, was the highest numbers for single-family properties
since March of 2010. The second half of 2011 is when these home
starts truly began to once again takeoff, with the past six months
being the most impressive. For multifamily homes, the past eighteen
months is where we can definitively say construction on these
properties made the turnaround as well.
Construction certainly is on the up. From our blog about average
new home sizes
growing to another about the boost in commercial
construction to yet a final blog determining that home
construction has increased by 30% over the
past year here in Massachusetts, there is a great deal to get
excited about. Across the nation we are seeing a 36.9% increase in
housing starts out West, 22.2% increase here in the Northeast, a
4.2% increase in the South and a 7.3% drop in the Midwest. Compared
to 2011, there has been already pre-set expectations of 765,000 new
homes to be built this year which would exceed the 612,000 from
last year.
The job market is a very crucial reason for these successes in
the construction industry of late. The past two years alone have
seen some four million or so jobs added to the economy nationwide.
In terms of total economic growth into this year, about 0.25% of
the total 2% of anticipated growth in the US economy should come
from new home construction. The stability of home prices,
strengthening economy and low interest rates are all reasons that
individuals are starting to purchase new properties with this added
trust they have in the current and future Real Estate market.
More Information: USA Today