New Home Construction Is Still On The Rise
The new home construction market is still going strong after showing its first dip this January since the last 10 months. Data from 2021 shows that a record 1,700,000 homes broke ground on construction to help with the nations inventory problem. The single-family home market is not the only one on the rise. In November there were a reported 525,000 new multi-family housing developments in production.
New home construction was reliably stable throughout all of 2021, even with the strain on building materials and the nations supply line, providing an increase in overall new homes by over 15% from 2020 nationwide, and aproximately 10% in Colorado alone, helping ot make Denver the 5th hottest real estate market overall. While this increase in supply has been a boon for many home buyers, especially for those unable to compete in bidding wars on existing homes, we still have a long way to go to bring inventory up to the level of demand.
So, what is in store for new homes in 2022? In December 2021, almost 1.9 million permits had been issued for new construction showing that 2022 will continue the trend of the previous year. Many experts agree that construction may not continue at the same record breaking rate that we saw during 2021, however they also agree that it is not likely to change by much. Supply lines, building materials, and a lack of skilled labor will continue to cause issues regarding speed of construction. In the long run it looks like 2022 is shaping up to be another record year helping to bridge the gap between suply and demand.