New Home Construction Jumps 18 Percent Amid Low Inventory

The construction of new single-family homes increased by double digits in November as a supply shortage continued to boost homebuilder interest in housing construction. Single-family housing starts surged 18 percent in November compared to October, according to data from the U.S. Census Bureau. Thomas Ryan, a property economist at Capital Economics, attributed this rise to “the extreme lack of existing inventory on the market,” which “continued to support newbuild demand and construction activity in November.” Single-family housing starts jumped to its highest level in 18 months, he noted in a Dec. 19 post. Owing to a slowdown in building permit issuance in recent months and the stabilization of new home sales, Mr. Ryan expects this gain to be “partially reversed” this month. However, “the big picture is that with mortgage rates falling and inventory tight, housing starts are likely to stay a lot stronger than they were in the second half of 2022.”...