The Housing Market through the Recession to Today: New Home Sales and Housing Starts
This is the second in a series of five factoids detailing the Housing Market’s recovery from the Recession and the potential for growth in both the Housing and Furniture Industries. As a whole, the Housing Market has made great strides in the last few years to recover from the Great Recession.
While Existing Home Sales were hit hard by the Recession, Housing Starts and New Home Sales both took staggering dives after 2007. New Home Sales plummeted 60 percent from 2007 to 2011. Sales have climbed a yearly average of 13.9 percent since bottoming out– totaling 512,000 in 2015. Although New Home Sales grew 67.3 percent from 2011, they are still 33 percent below the 2007 total of 769,000.
Like New Home Sales, Housing Starts have not caught up to 2007 levels mainly due to lack of inventory and cautious builders. After 2007, Housing Starts began falling 58.7 percent before hitting bottom in 2009. From 2009, Starts have increased 91.5 percent, but are still 20.9 percent below the peak of 2007.
Source: U.S. Census Bureau