The pace of new home construction surged in February, according to new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development. Single-family housing starts rose 11.4 percent from January’s rate, while the number of new homes that completed construction during the month was 7.1 percent higher than the month before. The news is an encouraging sign for the housing market amid higher home prices, elevated mortgage rates, and economic uncertainty. New home construction is often cited as the answer to the current market’s challenges, since it remains the fastest way to add additional housing supply in the areas where home buyers most want to buy. That helps slow prices and competition, which helps buyers. Put another way, the areas currently seeing the most new home construction are also the ones where buying conditions are seeing the most improvement. (source)
