U.S. Homebuilder Confidence Is Up
More home buyers are turning towards purchasing newly constructed homes, which is creating a positive impact on the confidence within the U.S. homebuilder industry. As more buyers are now buying homes without seeing model homes, or the amount of permits being issued for homebuilders has caused a spike within their confidence.
According to Vero News, builders applied for 75 new home permits in May, up from 66 in April, according to Ryan Sweeney, a top official with the county’s Community Development Department. Another 89 permit applications had been filed in June as of last Tuesday.
Keeping pace, the county issued 77 new home permits in May, which was up substantially from 45 permits issued in April and more than double the 36 permits approved in May 2022.
The surge in new home activity is being driven by a continuing shortage of resale homes, lower insurance costs for new homes compared to older houses, and “improving supply chain efficiency,” according to the National Association of Homebuilders.
Inventory on the island and countywide remains far below normal levels. With fewer resale homes to pick from, buyers are turning to new homes to find their place in the sun.
At the same time, new homes are more attractive to many buyers because they are up to code and cheaper to insure than older homes.
