The number of building permits issued is at a decade high, and building boomtowns are popping up all over the South and West. Construction is actually outpacing the current population in some cities, indicating that there may be population growth in those areas as people come in search of jobs.
Builder confidence in the market for newly-built single-family homes remains strong thanks to low mortgage rates and positive job growth. Home building jumped in October by 3.8%, the strongest pace since the beginning of the year, largely because of construction in the West and South.
On Tuesday, Lawrence Yun, chief economist of the National Association of Realtors and fellow Forbes.com contributor, said the issuance of housing permits booming ahead to their highest level in over a decade is “tremendously good news for the housing sector,” explaining that “permits are just paper, while housing starts are shovels in the ground — and permits generally lead starts.”