- Housing starts rise in 2015, 2016 shines bright
Housing starts rise in 2015, 2016 shines bright
- Jan 29, 2016
- New Home Ambassador
- housing starts housing market 2016 home builders new home construction
Housing market shows promise moving into the new year.
The National Association of Home Builders indicated housing starts finished up the end of 2015 on a high note, and the market shows promise in the new year.
Housing starts and permits increase in 2015. The NAHB reported nationwide housing starts rose to 1.11 million units in 2015, up 10.8% when compared to the previous year. Single-family home starts increased 10.4% to 715,000 newly constructed units.
Permit issuance ticked up 12% and settled at approximately 1.18 million new units for 2015.
"The gradual increase in housing production for 2015 mirrors our forecast and sets the stage for continued growth in 2016," said the NAHB Chief Economist David Crowe. "Strong job growth, rising consumer confidence and pent-up demand will keep housing on an upward trend."
The NAHB's Chairman Tom Woods indicated the numbers associated with housing starts and permits for 2015 align with their forecast. He also emphasized the expectation of further growth in 2016.
"Strong job growth, rising consumer confidence and pent-up demand will keep housing on an upward trend," noted Woods.
The housing market is expected to strengthen in 2016. At the NAHB's International Builders' Show, experts indicated a number of factors bode well for the real estate market in 2016, including:
- Rising consumer confidence
- Higher rates of household formation
- Pent-up demand for housing
- Improving economy
- Job growth
Housing starts in 2016 are expected to rise 13.4% from the projected starts in 2015 to 1.26 million, and single-family home starts are forecast to rise to equal 840,000 new units.
Builders still have concerns moving into 2016. While the housing market is looking strong, there are still some concerns among home builders. The availability and cost of resources are primary worries for professionals in the industry, including:
- Building materials
In addition, home builders are concerned with environmental regulations and policies. These new requirements often make it more difficult and expensive to construct new homes for today's buyers.
It is critical for more inventory to become available to interested buyers so affordability can improve for interested buyers looking for the home of their dreams. With home builders gaining confidence and increasing their awareness of potential hurdles, there is more promise in the future of the housing market.