Single-Family Building Takes 'Slight Step Back' in March
In March of this year, builders got 2.5 percent more permits than in February. Yet, single-family permits dipped 5.5 percent month-over-month, according to Census and HUD data.
Despite the month-over-month fall, the level of single-family permits in March did increase 1.7 percent year-over-year from 2017. Permits for condos and apartment buildings with five or more units increased noticeably, up 22.9 percent from February 2018, and 19.1 percent YOY. Housing starts also increased in March, 1.9 percent from February 2018 and 10.9 percent YOY. Completions were up 1.9 percent YOY, but down 5.1 percent month-over-month, Realtor.com reports.
New homes are typically significantly more expensive than existing homes, which have previously been lived in. That's because land, labor, and material costs are rising and all the latest appliances and finishes don't come cheap. The median price of a newly constructed home was $326,800 in February, according to the most recent HUD and Census data. That's compared with a median $241,700 for an existing home in February, according to the most recent data from the National Association of Realtors.
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