New construction is expected to grow 4.7% this year. (iStock)
As existing home prices and interest rates remain high, new home construction is becoming more popular again. Construction on more than 1 million new detached homes began in March. U.S. Census Bureau and National Association of Home Builders (NAHB)report.
The number of new homes built in March increased 21.2% year-on-year, but was down 12.4% compared to February.
Texas, California and Florida had the most new building permits issued this year. U.S. Census Bureau data States with smaller populations, such as North Dakota, Alaska, Wyoming and Vermont, had the fewest building permits. Washington, DC, also made the list of states with the fewest permits.
New home construction is projected to increase, especially as interest rates remain high and existing home inventory remains low. New construction of single-family homes is expected to increase 4.7% in 2024. About 988,000 new homes are expected to be built. The National Association of Home Builders estimated.
“The new-home market is becoming the dominant player and we expect that to continue into 2024,” said Ari Wolf, chief economist at housing research firm Zonda. Said.
NAHB also projects new construction of single-family homes will continue its upward trend in 2025. New construction is expected to increase 4.2% to 1.03 million units.
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Currently, 550 cities in the United States have an average home price of over $1 million.
A majority of Americans think now is a bad time to buy.
Buying a home is expensive. It’s the most expensive it’s been in years, which is why many Americans are hesitant to buy a home. Surveys show that about 76% of Americans Recent Gallup Poll I said now is a bad time to buy.
Meanwhile, only 21% believe now is the right time to buy a home. The reason for this low figure is rising home prices.
About 68% of respondents expect home prices to rise in their area, up from 56% last year. Price increases are not related to geography: Respondents living in urban, suburban and rural areas across the country agree that home prices will rise in the next year.
It’s not a matter of income level or political affiliation: Americans from all walks of life are struggling with the high cost of housing, and it’s expected to continue that way.
When you’re ready to compare mortgage offers, consider using Credible, which makes it easy to compare interest rates from multiple lenders in one place.
More than a third of Gen Z and millennials are asking their parents for help with a down payment on a home
Rising home prices are driving more adults back to their parents’ homes
The cost of buying a new or existing home remains too expensive for many would-be buyers, with more adults choosing to live with their parents instead of buying a home or remaining in the pricey rental market. Thrivent’s 2024 Boomerang Kids Survey found.
About 46% of parents surveyed have brought their adult children back home, and half of them cited rising housing costs as the main reason, compared with just 35% who said the same last year.
“This is a wake-up call that no one is answering. The rise in young people returning home highlights the enormous and growing financial pressures they face after graduation. The ripple effect this has on them and their parents is something we cannot ignore,” said Chaz Black, a financial adviser at Thrivent.
Along with high housing costs, debt is one of the biggest factors driving adults to move back home, with about 39% of survey respondents delaying homebuying because of student loan payments.
When adult children move into the home, it often has a negative impact on parents’ finances: When asked, 38% of parents struggled to pay off debt, and 37% found it harder to save for long-term goals while their adult children were living with them.
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As interest rates continue to rise, more homebuyers are paying discount points
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