After years of dealing with a stagnant real estate market, US construction firms are building more homes than at any time in the last five years. US builders applied for more construction permits in March than during any other month since mid-2008 – a major indicator of long-term growth for the important housing sector.
The real estate market has been on something of a roller coaster ride for the last five years, facing declining values and turbulent sales figures. While many coastal states have weathered the storm fairly well, housing sales have slowed in many of the US’s central cities, with many homes sitting on the market for years at a time.
Recent figures, however, indicate a 6.8 percent increase in the number of building permits that US construction firms are applying for. The increase in construction is an important positive development after new residential developments decreased by a staggering 14.8 percent in April.
Many experts in residential development have pointed to March’s rapid growth – an estimated 1 million new houses were scheduled for construction during the month – as the reason for April’s decline. However, the amount of new construction permits applied for during May indicates that the market could be in a long-term recovery.
The construction permits cover a variety of single-family dwellings, including single-family homes, condos, and family apartments. Over 60 percent of the new buildings will be standalone homes aimed at single families, with large-scale buildings still an afterthought in the current market.
Construction of new homes has increased over the past twelve months, with 2013 a key ‘recovery year’ for the US real estate market. Statistics published by the National Association of Home Builders indicate a 28.6 percent increase in the number of new homes being built since May 2012.
