Homebuilding Expected to Remain Strong in 2024
Charlotte NC, January 9, 2024-"Home building was the big story in the group in 2023 as the incredibly low turnover of existing homes drove prospective buyers to new construction,” reports Truist.
“Though the housing market was broadly down during the year, disproportionate new home sales led to a banner year for the public builders. As we have previously noted, new home sales gained notable share over existing sales; however, new home inventory also made a notable move. 2023 new home inventory jumped to 30% of total inventory, which is roughly double compared to the historic average. Builders are increasing output of new homes, a positive for volumes for our group, and the expanded inventory likely means that new home sales remain comparatively elevated in 2024. Builders have also provided constructive initial frameworks for this year, driven by the fundamental under-built nature of the U.S. housing market. Note that estimates range from a 1.5 million to 7.3 million home deficit and the NAHB estimates that starts need to run at a 1.1 million run-rate to begin reducing the deficit.”