Real Estate News

Housing construction numbers show possible strength for this year

Published: 27 May 2017

Despite a recent lag, it seems like the rate of housing construction so far this year may be a positive thing for the industry. Based on information from the Census Bureau, there may have been a noteworthy amount of building at the beginning of the year to justify some optimism, at least for the time being. Prospective buyers could use this information to judge the growth of residential housing as a whole, not just based on most recent statistics.

On May 16, the Census Bureau's data showed the rate of seasonally adjusted housing construction dating back to 2012. According to this timeline, permits, starts and completions have all generally trended upward over the past four years, even though there have been ups and downs along the way to consider.

Seen in a larger perspective, the gains in these categories seem to be more significant than the recent downturns. For example, the seasonally-adjusted rate of April housing completions was more than 15 percent higher than it was a year before, even though it was also 8.6 percent lower than was seen in the previous month. Whatever the results this year, the overall story from this trend may be a good one for builders and possible residents alike.

It's worth remembering that these statistics are general in scope, and that the housing market in each state might tell its own version of this story. The Los Angeles Times cited information from the California Department of Finance about the local rate of housing construction, for example, tracing the amount of new units appearing from 2010 to 2016. Last year brought 88,562 new homes, the source said, and the population grew by a sizable leap between 2015 and 2016 after dropping during the year before.