Housing demand may be pacified in the near future, as the level of residential starts increased throughout much of the country during the third quarter, according to a report from Metrostudy.
Of the 40 markets examined in the firm's National Housing Audit, all but two experienced more housing starts during the third quarter when compared to the same period in 2011. The most significant improvements occurred in housing markets with the most affordable options, as well, despite median home prices increasing in many areas.
Housing starts remained low for an extended period after the recession, and much of this was due to the increased inventory level because of foreclosures and vacant units from the previous housing boom, the report added. However, the large levels of inventory mainly dissipated, which leaves more room for other, new properties to meet the increased demand from consumers and investors.
Increasing housing starts was noted by the Department of Housing and Urban Development in a property data report. During September, residential property starts rose 15 percent to a seasonally-adjusted annual rate of 872,000, from August's level.