April’s New Residential Construction report showed a 30.2% drop in privately-owned housing starts, to an annual rate of 891,000 units.
Bill Banfield, Quicken Loans Executive Vice President of Capital Markets, offers the following insight on the report:
“This drop in new home construction is not surprising since most states were under stay-at-home orders in April, which included home builders. While it may seem grim, we know there is light at the end of the tunnel because in May, many states – including our home state of Michigan – began to allow construction. This is reassuring since, with home buying expected to bounce back after the country reopens, it is critical builders generate enough new supply to keep up with strong demand.”
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