New Home Construction Increase is Strongest in 30 Years

Need further evidence that the housing market will be strong in 2006? How about the astounding increase in home construction?

In January, privately-owned housing starts were at a seasonally adjusted annual rate of 2,276,000 - compare this with the December 2005 estimate of 1,933,000 and that’s a whopping 14.5 percent increase. It’s the largest level in over 30 years. These numbers are courtesy of the U.S. Census Bureau and Department of Housing and Urban Development.

“We expect 2006 to be the second strongest year on record for housing, following 2005,” said Bob Walters, chief economist of Quicken Loans.

He cites low long-term rates and a strong job market as proof of this statement. The recent home appreciation increases across Florida would certainly spark further construction for those hoping to cash in on such an industry.