Builders Renew Focus on Single-family Homes

by Isaac Benmergui, Esq on December 11, 2017

Builders renew focus on single family homesIn many areas of the country, Miami included, there’s a severe shortage of single family homes in price ranges under $500k. But there’s good news, finally. Building permits were up this fall, and that signals an increase in new construction.

After the housing crisis, many builders went under completely, and there was also a renewed focus on multi-family properties, since many people who lost their homes during the crisis no longer had good enough credit to buy a home. Millennials also showed less of a willingness to purchase in previous years in order to stay mobile and live in urban areas.

But now, Millennials are settling down, Boomers aren’t leaving their family homes to downsize, and the demand for single-family housing has been insatiable, even in relatively low-demand markets. That led to a 5.9 percent increase in building permits in October 2017 over September 2017. Permits for single-family homes were up 1.9 percent from September and 7.7 percent from the same time last year.

Housing starts, or construction on homes that have been started but aren’t finished yet, increased 13.7 from September to October for all types housing and were up 5.3 percent for single-family homes.

The number of new homes finished each month is on the rise, too: up 12.6 month over month in October and 15.5 percent year over year. The most new homes completed were located in the South—good news for Florida.

“The level of single-family homebuilding is almost exactly what we saw 10 years ago,” says Chief economist of Realtor.com, Danielle Hale. “It is a bit of a milestone to get back to that level, [but] there’s still more room for improvement.”

Call Miami Real Estate Lawyer Isaac Benmergui at 305.397.8547 and set up a no charge, no obligation consultation to discuss your case. We have over a decade of experience handling Real Estate and Civil Litigation cases throughout Miami and South Florida, and will use our expertise to help your case to the best of our abilities.

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