More new homes are on the horizon as builders nationwide secured 4.6 percent more permits during January compared with December.
The activity was 8.2 percent higher than the number of permits issued during January 2016, according to the latest seasonally adjusted figures released jointly by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.
The Northeast saw the largest spike, jumping 29.6 percent from December and 71.3 percent from the January 2016. Despite the increase, the region still trailed the rest of the country most likely due to the lake of available land, high property prices, and more local government regulations compared with less stringent and more builder-friendly parts of the country. The pickup in permits comes amid a market with tight inventory and the number of finished houses delivered last month declined 5.6 percent compared with December and slipped 0.9 percent from January 2016.
The number of new permits is encouraging,” says Joe Kirchner, senior economist at Realtor.com. “Eventually that will lead to new homes on the market.”
Advertisement
Related Stories
Economics
Housing Share of GDP in Q1 2024 Rises Above 16%
The increase marks the first time GDP has surpassed 16% since 2022
Economics
Shelter Costs Drive Inflation Higher Than Expected in January
January Consumer Price Index data show inflation increased more than anticipated as shelter costs continue to rise despite Federal Reserve policy tightening
Economics
Weighing the Effects of the Fed's and Treasury's Latest Announcements
The upshot of the Jan. 31 announcements is that while mortgage rates will stay higher for longer, they're likely to hold steady