The Federal Saving Bank shares reports on how housing inventory is rising to meet demand.
According to a July 17th joint release from the U.S. Department of Housing and Urban Development and the U.S. Department of Commerce, construction increased in June 2015. The Federal Savings Bank thinks this jump in construction will also meet the rising demand for housing as first-time home buyers decide to invest in real estate.
Construction increases in June
The volume of building permits in June jumped 7.4 percent when compared to the previous month. The number of authorized privately-owned housing units was also 30 percent higher on a year-over-year basis.
In addition to building permits increasing during the month of June, the total number of housing starts rose 26.6 percent from the previous year.
The joint press release also indicated housing completions of privately-owned structures increased 22 percent when compared to June 2014.
According to The Wall Street Journal in a July 17th release titled “Apartment Demand Drives Home Construction”, multi-family housing was the primary driver of new construction. In fact, the number of new condos and apartments increased 29.4 percent in June when compared to the previous month.