Nationwide New Home Construction Indicates Possible Supply-Side Relief

With existing home inventory moving faster these days due to record low interest rates, tight supply, and pent-up demand, rectifying the imbalance depends upon new home construction. Fortunately, nationwide indicators show possible relief on the horizon, with December housing starts up 28% year over year signaling the largest gains since 2006, with an annualized 1.67 million homes started for construction. Moreover, per the latest US Census Bureau report, permits for new construction also rose 4.5% in December, compared to November, to an annualized 1.71 million homes.

However, while housing starts and permits are up, developer sentiment may indicate good times for buyers are in no way guaranteed in the short-term because of supply-side headwinds, such as:

  • lack of affordable land
  • increasing lumber and material costs
  • shortage of skilled labor

All told, since new construction homes have been historically underproduced for the past 13 years, a strong new construction boom over the next couple years may be the only path towards balancing the tables between buyers and sellers. Learn more at Boston Agent Magazine’s article below:

December Housing Starts report offers optimism for 2021

About the Author

I am the lead real estate agent and founder of the Aviator Properties Team within the premier global brokerage, Coldwell Banker Realty. I'm a Boston, Brookline, and Newton resident since relocating from Washington, DC in 2002 to earn my MBA at Babson College in Wellesley. While Metro West is my home base, my Massachusetts real estate adventures take me from the Berkshires to the Cape and everywhere between to find the extraordinary properties that my clients call home.

My real estate expertise is buoyed by previous experiences ranging from CEO of a venture-backed startup to a decade long stint in TV production. I've been a buyer and seller of residential and commercial real estate, and have founded and operated successful multi-million dollar businesses spanning the industries of e-commerce, consumer products, toys, electronics, and content creation.

Always striving for service excellence, my clients find me overly organized, highly communicative, thoroughly detail-oriented, a creative problem solver, analytically driven, and thoughtful win-win negotiator. My entrepreneurial approach draws upon a cross-sectional toolkit of finance, development, management, sales, marketing, and negotiation skills to deliver reliably favorable results.

A dedicated husband and father of two kids (and two cats), my hobbies range from RC car and drone racing to the pursuit of live music and world travel, and poking holes in the clouds as a private pilot. I am "always-on" and ready to be your secret weapon in your home buying or selling mission. I prize my clients and look forward to sharing my passion for winning at real estate with you!

Real Estate Accreditations: Massachusetts Association of REALTORS®, Accredited Buyers Representative, Luxury Property Specialist, Resort and Second-Home Property Specialist