The national home ownership rate, property values and sales are all elements of the housing market that have either returned to pre-recession levels or are making strides in that direction. Despite this, the rate at which new homes are being built in the U.S. are far from a full recovery. In fact, a new analysis of market trends shows that the depressed construction rates may continue to linger for quite some time.
According to Zillow, housing starts are predicted to remain below historical averages through 2022 or later. Only one-in-five panelists in a survey expect single-family home starts to return to one million – a benchmark that has not been reached since 2007. More than 25 percent said it may happen by 2021 and 54 percent believe it will be at least another three years or more.
The high price of buildable land, raw materials and labor have plagued the residential construction industry for years, leading to the lowest inventory levels this century.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.