Housing starts picked up momentum in April following setbacks the past couple months. Builders spotted a clear runway in April, coming on the heels of a March rebound in new home sales and in the midst of low mortgage rates, a robust labor market and none of the barriers presented by this winter’s partial government shutdown or early signs of a trade war with China.
There’s room in the market for more new homes, with housing inventory still low by historical standards and affordability suffering in many markets. Market affordability for builders is a different story: Their costs have risen with too few lots and workers, and material costs remain high.