New home construction is an important piece of the housing market puzzle. When the supply of homes for sale is low – as it has been for many years – building more homes is the quickest way to balance the market. These days, the effect can be seen in the regional differences found in home-price data. In the South, where home building has been more vigorous over the past few years, home-price increases have largely stalled. In the Northeast and Midwest, on the other hand, where there’s been fewer new homes built, home prices are increasing faster than anywhere else in the country. So, where does the pace of home building currently stand? Well, according to the latest numbers from the U.S. Census Bureau and the Department of Housing and Urban Development, housing starts were up 7.2 percent in January. The gains, however, were primarily in multi-family units. Single-family housing starts and building permits both fell in January from one month earlier. (source)
