House-hunting today can feel challenging due to the limited supply of homes for sale. If this has been your experience, and you're having difficulty finding a home that ticks all your boxes, it's time to consider a brand-new build. A recent report from the National Association of Realtors (NAR) suggests: “House-hunters are currently faced with limited choices during what is typically the busiest season for real estate... The existing home supply is around half of what it was in 2019... However, new home construction offers a beacon of hope.” Let's delve deeper into a crucial indicator that reveals the accelerating pace of new home construction across the country. This metric, known as new residential completions, signifies the number of newly constructed homes that are complete and ready for move-in. The chart above, sourced from Census data, displays the trend in new home completions over time. It also shows the long-term average of completed housing units. As depicted on the right of the graph, the years leading up to the 2008 housing crash saw builders exceeding the average, leading to an excess of homes in the market. This oversupply, in turn, led to a decline in home values, contributing to the crash. Since then, new home construction has been somewhat subdued, with builders unable to meet the historical average. This underbuilding contributed to a prolonged inventory deficit in the housing market, a key factor behind today's limited housing supply. The silver lining? The latest Census report reveals that builders are now matching the long-term average, resulting in more newly constructed homes entering the market than we've seen in the recent past. Additionally, residential starts and permits - indicators of imminent construction - are also on the rise. A surge in these figures implies that more new homes are soon to be on their way. What This Means for You The increasing number of homes in various construction phases means an expanded pool of options for you. If you're eager to move soon, touch base with a local real estate professional to discover recently completed homes in your region. These move-in ready options can be a quick solution to your housing needs. Alternatively, if you can afford to wait and relish the idea of designing a home from scratch, inquire about homes currently under construction. Buying a home still being built allows you to contribute to its design, choosing features and finishes that suit your style. This could be your ideal choice when existing homes don't meet your expectations. Either way, an experienced real estate agent is an invaluable resource during this process. They have the inside scoop on what's available in your locality and can tailor their recommendations based on your specific requirements, favorite neighborhoods, and more. To Sum Up So, if you're struggling to find a suitable home amidst low inventory, it's worth considering new home construction. If you're ready to explore this possibility, connect with a trusted local real estate professional who is well-versed with the options in your area.