Harvard: Homebuilding is Gaining Momentum

Construction is gaining momentum in 2016, according to The State of the Nation’s Housing, an annual report released by the Joint Center for Housing Studies of Harvard University.

Housing starts grew 10.8 percent to 1.1 million units in 2015 compared with the year prior. Single-family starts were at 715,000 for the year and completions were at 647,900 units, their highest level since 2008. Single-family construction is expected to expand in 2016 due to an 8.7 percent increase in permits, according to the report.

“By many means, the U.S. housing market has recovered substantially from the crash,” the report said.

However, there are still struggles. Single-family units were completed at an average rate of 750,000 per year between 2006 and 2015, which Harvard said is the lowest number in any 10-year period since 1968. Although 1.2 million households were expected to form on average each year between 2007 and 2013, only half that amount actually formed. The report pins the blame on a weak economy that made it hard for young adults to live alone and for immigrants to settle in the U.S.

The full report is available online.