New Homes being added to the Market:
Housing Starts
A good gauge of new home construction is indicated through the Housing Start report. A housing “Start” is seen as the breaking of ground and the start of new construction. Within this month’s report we see that “Starts” increased from the prior month by 5% and was very strong for the month of May. Since last year “Starts” are up over 20% and this is their strongest number in eleven years! Even with all of this new construction, demand is still keeping up with supply. This report enforces the fact that the housing market is very hot and still a safe bet to invest in because of the amount of demand helping your investment appreciate.
Source: http://bit.ly22tkM758
Housing Completions
Another portion of this report is the housing “Completions” portion. A “Completion”, is the number of new homes that are available for occupancy within a time period of one year. Housing completions for May were strong: increasing since its prior month by 1.3% and over 10% since this time last year. The strongest component of both reports was the single-family housing sector.
Source: https://www.census.gov/construction/nrc/pdf/newresconst.pdf
Did You Know?
Millennials are characterized as those who are born between the years 1981 and 1997.
In China, their millennial population is made up of over 400 million. In the United states there are only roughly 237 million in total population.
Within the Millennial demographic, those aged 32 years old are the median age of a first-time home buyer.
First-time homebuyers account for about half of all mortgages.
More than half of the US Population, about 160 million people, live in just nine states: California, Texas, Illinois, Michigan, Ohio, Pennsylvania, Georgia, New York, and Florida.
Source: http://www.businessinsider.com/half-of-the-us-population-lives-in-just-9-states-2016-6
Source: https://www.bloomberg.com/news/articles/2018-06-04/first-time-u-s-homebuyers-account-for-almost-half-of-mortgages
By: Jon Iacono