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Homebuilding on the Rise; Demand Shifts to Lower-Density Markets
U.S. homebuilding increased in June by the biggest monthly gain in nearly four years, Reuters reported, citing Commerce Department data. Single-family housing starts increased 17.3% to a seasonally adjusted annual rate of 1.186 units, while multifamily construction rose 17.5% although permits for new units declined by 13.4%.
Reuters reported that the National Association of Home Builders’ latest member survey showed increased demand for single-family homes in lower density markets, including small metro areas, rural markets and large metro suburbs.
The public health crisis has shifted office work from commercial business districts to homes, a trend that economists predict could become permanent, according to Reuters.
“Homebuilding is coming back at a steady, if unspectacular pace,” Robert Frick of Navy Federal Credit Union in Vienna, VA, told Reuters. “The numbers also verify that many people are leaving, or planning to leave, big cities as telecommuting becomes the norm for many businesses.”
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- ◦Economy
- ◦Development
