New home construction plays an important role in housing market conditions. When builders are building more homes, the added supply helps level the market and keeps home prices from spiking. Which means, if you’re a prospective home buyer, the number of new homes being built affects you – whether you’re buying a new home or not. So, how’s new residential construction doing these days? Well, the latest data from the U.S. Census Bureau and the Department of Housing and Urban Development shows the number of new, single-family homes that began construction in January was down 8.4 percent from the month before. That’s a significant decline, but analysts say snowstorms and frigid temperatures were the primary reason for the decrease. Winter weather affected much of the country in January and brought numbers down in the Midwest, Northeast, and South. The West, on the other hand, saw a 24.9 percent surge in home building. Overall, the number of single-family homes that began construction in January was just 1.8 percent below last year at the same time. (source)
