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Surging New Construction Could Ease U.S. Housing Crunch

by UrbanTurf Staff

Booming housing start numbers in December could signal relief from the chronic shortage of homes for sale that the country is experiencing. 

Housing starts rose 6% to a seasonally adjusted annual rate of 1.669 million units in December, the Commerce Department reported on Thursday. Single-family homebuilding, the largest share of starts, rose 12%. 

"Home construction finished the year with the biggest bang since 2006," NAR Chief Economist Lawrence Yun said. "That means the worst of the housing shortage could soon come to an end. More inventory is clearly needed to lessen the heat of multiple offers and the consequent frustration of multiple losing bids."

The need for new housing is significant. Numbers out Friday show the inventory of homes for sale at 1.9 months, the lowest level on record. 

This article originally published at http://dc.urbanturf.com/articles/blog/could-new-construction-ease-the-us-housing-shortage/17793

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