By Arlenys Tabare
According to data released this week by the Census Bureau of the Department of Commerce, The construction of single-family homes in the United States fell 2.4% year-on-year.
The report states that Permits for future construction of single-family homes also decreased 2.6% in April, until reaching 872,000 units, which means that, amid high mortgage rates, the real estate market could remain tight for a while.
This in the midst of the war with Iran, which has skyrocketed oil prices, making inflation again rises above 3% and driving the rise of 10-year Treasury bonds, which are subject to the mortgage rates that have remained above 6% this week, according to data from Freddie Mac.
The construction sector in the United States has not only been affected by the increase in raw materials due to high tariff rates, but also by high land costs and a lack of labor due to strict immigration policies, so builder sentiment this month has remained low, according to data from the National Association of Home Builders.
However, while inventory in the housing market has decreased in recent years, leading to skyrocketing home prices and many prospective buyers staying on the sidelines, The levels compared to those recorded in 2007 remain higher.
Given a request by the Executive to stop the purchase of single-family homes by institutional investors with the purpose of stabilizing the sector and making homes more affordable.
In March, 89 senators voted to approve the measure, approving a legislative package that seeks to promote the construction of more affordable housing and thus alleviate the real estate crisis.
The project was greatly promoted by Democratic Senator Elizabeth Warren and Republican Senator Tim Scott, whoThose who agree that it is necessary to address this issue as soon as possible, since the country is in a deficit of around four million homes.
Keep reading:
- Sales of existing homes in the US increased just 0.2% in April
- Mortgage rates in the US increase again, showing strong volatility in the real estate market
- Home prices fell in some US cities, ATTOM data shows
- More than 70% of the Latino population in the US affirms that acquiring a home is a goal in their life, according to analysis
