The housing market showed healthy year-over-year growth across new and existing housing activity in July, although the pace of growth slowed in recent months.
This time last year, housing activity showed the first signs of growth following the initial shocks of the COVID-19 pandemic. While housing activity has continued its upward trajectory at the national level, recovery in new construction has varied in major metros. New York City, for instance, was one of the hardest-hit areas in the United States and experienced a slower rebound in new construction activity post-pandemic compared to other metros observed.
New and existing housing supply activity, July 2021
- Single-family housing authorizations increased 13.28% year over year.
- Existing housing maintenance volume increased 2.99% year over year.
- Existing housing remodel volume increased 3.56% year over year.
“New and existing housing activity is experiencing a gradual stabilization as year-over-year growth has slowed in recent months,” says Jonathan Kanarek, managing director of BuildFax, a Verisk business. “Although the pace of growth has decelerated, housing activity still saw healthy increases this month, just not at the rate of frenzied growth seen during the pandemic. Metro housing markets that were slower to recover following the aftershocks of the pandemic provide the untapped potential for further growth in 2021.”
The biggest unknown right now is how consumer behaviors will shift in reaction to the delta variant. Will we continue to see an exodus to the suburbs if lockdowns are on the horizon? Will the trend of home renovations continue as homeowners are stuck at home? We’re closely monitoring how the housing market reacts in the next phases of COVID-19.
Download the report for a full view of U.S. housing market activity in July.