FEWER NEW HOMES BEING BUILT - HOUSING MARKET UPDATE
Construction of new single-family houses fell 2.5 percent in April 2017 from the prior month, according to the most recent data made available by the U.S. Department of Housing and Urban Development. The annual rate of 1,172,000 housing starts only increased by 0.7 percent over the past year, validating a dismal growth rate of new homes being constructed.
Fewer homes being built along with a slowly improving jobs market and growing families has helped escalate the demand for homes across the nation. As demand has been outstripping supply, home prices have been climbing across the country.
In addition, construction of new homes has been despondent as a lack of qualified workers has hindered the home building industry since the displacement of jobs during the real estate downturn following 2007. The challenge of hiring stems from skilled workers that left the industry during the downturn and have found other occupations since then.