Housing starts are expected to reach 1.25 million units this year, the highest level since 2007.
HousingWire reports that housing industry experts predict that 2017 will be a good year for new home construction. High demand, low supply, and a strong economy will give builders the opportunities to break ground on more homes. The Midwest and Northeast are especially poised for growth, according to economists.
It won’t be easy to increase housing production, though, as good labor is becoming harder to find, and materials continue to get more expensive. Plus, the rising rate of housing starts still might not match up with the boom in job growth across the nation.
“Though a recovery in housing starts in June is welcome news, more consistent gains are needed to help rebalance the housing market,” said Lawrence Yun, National Association of Realtors chief economist. “The latest 1.22 million in total housing starts is still well below the historical average of 1.5 million.”