Single-Family Homes Increase, Multifamily Home Construction Decreases

January 26, 2012

chicago homes for saleNational Association of Home Builders (NAHB) has good news for buyers interested in Chicago new homes! Single-family home production rose 4.4 percent in December according to the U.S. Commerce Department. This means an additional 470,000 homes are being constructed across the country.

This increase is the third consecutive increase in single-family home construction, making it the fastest pace since April 2010.

Bob Nielsen, chairman of the NAHB, commented that the demand for new single-family homes is increasing nationwide, which enables builders to return to the jobs. He also said in a press release that if not for overly tight credit conditions for builders and buyers, the foreclosure crisis and difficulties in getting accurate appraisals on new homes, the increase of construction and desire for new homes could be even higher. “Policymakers should be doing everything possible to alleviate these problems and nurture the fledgling housing recovery in order to promote job and economic growth,” Nielsen said.

Though new home construction for single families is increasing, multifamily home building is suffering, and making the market look bad on the whole. The overall number of new home construction actually fell 4.1 percent due to a 20.4 percent decline in multifamily construction.

NAHB Chief Economist David Crowe said the decline in new multifamily construction in December came after a dramatic increase from the previous month, which basically brought that sector back to trend. As for Chicago new homes for multiple families, December housing starts rose 54.8 percent in the Midwest after a large decrease in November. But it’s time to look forward.

The NAHB predicts a 17 percent increase in both single- and multifamily housing productions this calendar year.

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