ARLINGTON, Va.—While lack of affordable inventory has hampered the housing market in recent months, the number of home groundbreakings rose to a 13-year high in December – up 16.9% to 1.61 million annualized units – according to data released by the Census Bureau.
"This is good news for a tight housing market that needs more supply to dampen rising prices and provide options for buyers," said NAFCU Research Assistant Nadir Tekarli.
Groundbreakings for single-family homes hit the highest level since 2007 as they rose 11.2%, while multifamily dwelling groundbreakings reached their highest level since 1986 with a 29.8% increase.
In addition, new home construction was up 3.2% in 2019 largely due to a fourth quarter surge. Unseasonably warm weather had a positive impact on the market, Tekarli said.