New home construction ends 2021 on high note
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New home construction ramped up in December, with housing starts hitting the highest rate since March.
Why it matters: Demand for new homes rose amid the great reshuffling brought on by the pandemic. The resulting home price growth is stimulating the most active run for homebuilders since the boom years of the mid-2000s, a potential source of strength for the economy.
By the numbers: The Census Bureau reported starts rose a stronger-than-expected 1.4% to a seasonally adjusted annual rate of 1.7 million in December.
- In 2021, roughly 1.6 million houses were started, the most since 2006.
Our thought bubble: Markets can still work. Economic actors — homebuilders — are responding to high market prices with additional investment and employment aimed at boosting supply. I'll be darned.
