Despite the long-term effects of the housing crisis and the shortage of construction labor and materials, nearly 7M single-family homes were built in the last decade, according to the National Association of Home Builders (NAHB).
Among those 6.8M newly constructed homes built during the 2010’s, there were approximately
- 53M custom home starts
- 827,000 townhomes (single-family attached)
- 300,000 single-family homes built for-rent starts.
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Multi-family starts totaled approximately 3.1M starts during the 2010’s and as a result, the multi-family segment of the housing industry was the first to rebound from the Great Recession by 2015.
Regional new construction building during the 2010’s looked like this, according to the NAHB:
- +50% starts in the South
- 23% starts in the West
- 15% starts in the MW
- 8% of the starts in the NE
The NAHB also indicated that remodeling projects during the last decade totaled approximately 150M projects to the tune of $1.5T.
Zillow research indicates that new construction in southern markets is expected to outperform during 2020.
The first half of the 2010’s experienced a large uptick in demand for rental units. Homeownership rates dropped from 67.1% to 62.9% by 2016, a post-recession low. Homeownership rates then rebounded in the second half of the decade to 64.8% by Q3 2019.
Remember too that supply and demand are fundamental touch points for housing starts and here, supply includes the supply of labor and materials. NAHB figures indicate that the construction industry labor force lost some 1.5M jobs during the Great Recession. After reaching its lowest point in 2011, the construction labor force has slowly gathered momentum and is increasing.
Meanwhile, the NAHB reported that lumber prices increased by some +63% in 2018. Now, those lumber prices have come down a bit BUT the cost of other construction materials has substantially increased thus raising the overall costs of new single-family and multi-family price and rental points.
Thanks to the National Association of Home Builders and HousingWire’s Julia Falcon for source data.