Construction of new homes this 2016 is expected to rise despite a recent drop in the number of new projects last January.
According to the U.S. Department of Commerce, there has been a 3.8 percent drop in new-home construction across the country. This drop, however, is not a cause of concern among industry experts.
Realtor.com stated that experts in the industry are expecting to see an increase in the construction of new homes this year, as more Americans plan on achieving their dreams to own a home.
"This will be another year of growth in new building construction. There will be more opportunities to buy new homes," said the publication's chief economist, Jonathan Smoke.
The publication stated that while there was a drop in the construction of new homes last month, there was an increase in the housing permits secured from 1,059,000 in January 2015 to 1,202,000 in January 2016.
Smoke noted that securing these permits is the first step towards the construction of new homes.
"You can have permits and start moving in opposite directions because they represent different things," he added.
Permits rose significantly in the Midwest from 148,000 to 205,000 while a drop was seen in the Northeast from 121,000 to 90,000. The Northeast, however, saw an increase in new construction from 108,000 in 2015 to 156,000 in 2016.
Economist Robert Dietz from the National Association of Home Builders also shared that there is a growing demand for rental apartments this year.
As previously reported here on Realty Today, homeownership is no longer a priority for Americans this year.
This is due to the rising prices of houses in the real estate market with no increase in wages.
"Jobs are increasing, but wages really haven't caught up," said Jonathan Bowles from the Center for an Urban Future.
This has led more Americans to opt for rental apartments rather than save up for the down payment of their dream homes.
