08 Nov Homebuilding: 2020 Year in Review and Outlook from Millonacres
Written by Marc Rapport, Millionacres
In January, the National Association of Home Builders (NAHB) predicted that new home sales would reach 708,000, up 2.5% in 2020 from 2019, the first year sales would surpass 700,000 since 2007.
Single-family housing starts, meanwhile, were predicted to increase more than 3% from 2019 to about 920,000 units, still “significantly less than the 1 million to 1.1 million units that demographics would support,” the big trade group said in that report.
Now add a staggering pandemic and fast-forward 10 months. Despite temporary shutdowns in some areas and historically high surges in unemployment, the combination of historically low interest rates and soaring demand saw single-family housing starts in September hit a rate of 1.1 million, according to figures released Oct. 20 by the U.S. Department of Housing and Urban Development (HUD) and the Census Bureau.