New Construction and What It Means for Homebuyers in 2025
- freddy
- 6 days ago
- 1 min read
March brought an interesting mix of data in the housing world — and if you’re a buyer, seller, or real estate pro, there’s a lot to unpack (with opportunity on the horizon!).
📈 Building Permits rose 1.6%, slightly beating expectations. This is a forward-looking indicator showing that builders are planning for new homes — a sign of confidence in future demand. But keep in mind, permits represent the maximum number of homes that could be built, and not all will make it to the finish line.
Why? Rising material and labor costs — especially due to tariffs — may slow some of those projects down. That’s already showing in the sharp drop in Housing Starts, which fell 11.4% in March from 1.494M to 1.324M. That’s the biggest monthly decline in a year.
Now here’s the bigger picture 👉 Over the past five years, average household formation has been about 1.8 million per year, but we’re not building enough homes to keep up. Even though completions are running at 1.55 million annually, that’s still below what’s needed — and it’s based on past starts, not future ones.
💡 Bottom line: Demand continues to outpace supply. That’s why this market remains strong and home prices are being supported despite short-term builder hesitation.
As an experienced mortgage broker, I see this as a great window for buyers.
Let’s talk about how you can make the most of today’s market.
—Freddy Kling Mortgage Broker | Simplicity Mortgage
📲 Call or text me at 386-401-9000