Housing Starts rebounded in April, rising 5.7% from March, though coming in lower than economists had forecasted. However, starts for single-family homes, which make up the bulk of homebuilding and are the most crucial due to buyer demand, were essentially flat at a 0.4% decline. There was a similar trend in future construction, with Building Permits moving lower despite much needed supply.
What’s the bottom line? While Housing Completions did rise in April, softer than expected construction activity this spring could limit much needed supply down the road. This bodes well for appreciation and shows that opportunities remain to build wealth through homeownership.