The Rental Market: Many of the new households forming are Renters.
No Vacancies are at multi-year highs and Rents are rising sharply.
Home prices edged up to 7% from 5% nationwide in 2015. “Such appreciation helped owners see substantial gains in equity,” Smoke writes. “Home values are close to being fully recovered nationally.”
Existing Home Sales
“Existing home sales were up 7% in 2015, buoyed by strong household formation (at about 1.4 million households formed in the past four quarters, ending in September) along with strong job growth. Distressed sales fell in 2015, as did sales to investors, international buyers, and second-home buyers,” Smoke notes.
New Home Construction
New-home sales were up 13% in 2015. Most of the growth in new-home construction in 2015, however, was centered in apartment building rather than single-family homes. “Even with more than 20% growth in total new construction, we will have created only a net new 900,000 housing units, less than 65% of the new households we created,” Smoke notes.