New Construction of Homes Keeping Housing Market ‘Afloat

08/21/2023 angelica@builder.media

With the housing shortage, it leaves buyers no other choice than to buy a newly built home.

According to Fox Business, that’s the highest share of any second quarter on record, the technology real estate brokerage reported. It underscores how new construction is “keeping the housing market afloat amid the severe shortage of existing homes for sale,” according to the real estate brokerage.

During the first quarter, new home inventory reached a near record high of 33.6%. The drop is a typical seasonal pattern, according to Redfin.

However, new home inventory is up slightly from this time last year and is nearly double what it was during the pandemic, which was about 17%, according to the data.

Builders aren’t constructing as many single-family homes as they did during the housing frenzy in 2021 and early 2022, “but so few homeowners are putting their homes on the market that new homes still make up a huge share of available inventory,” according to Redfin.

In June, total housing inventory reached an all-time low after dropping 15% year over year, according to Redfin data.

The amount of newly built single-family homes for sale in June, though, was up 4.5% year over year. There was an 18% drop for existing homes, according to Redfin data.

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