Housing activity ended 2020 on a strong note with increases across almost all major indicators.
New construction activity was a bright spot for the economy in 2020. Single-family housing authorizations increased 13.97% year over year and 3.21% month over month. The housing market, however, is still experiencing some growing pains with inventory hitting record lows in December. New construction is expected to continue into 2021 to help curb tight housing supply.
In the existing housing stock, maintenance and remodel volumes—the latter a subset of maintenance that includes renovations, additions, and alterations—ended the year on a six-month, year-over-year growth streak. Instead of re-entering the market, many homeowners are choosing to invest in their existing properties while the economy recovers.
New and Existing Housing Supply Activity, December 2020
- Single-family housing authorizations increased 13.97% year over year.
- Existing housing maintenance volume increased 10.07% year over year.
- Existing housing remodel volume increased 12.93% year over year.
“Despite a wavering economic recovery amid rising COVID-19 cases, housing activity shows no signs of slowing,” says Jonathan Kanarek, Manager Director of BuildFax, “Continued increases in new construction and existing housing activity signify ongoing market strength.”
Download the report for an in-depth view of U.S. housing activity in December.