Yes, there is good news in real estate beside prices going up. According to the US Commerce Department housing starts increased by 9.2 percent in August, which translates to a seasonally-adjusted annual rate of 1.28 million units.
This, of course, is great news for the housing industry that is starving for inventory. However, the long-term prognosis isn’t so rosy. The high regulatory expense of new construction couple with ever-increasing costs for building materials, fueled largely by ongoing increases in tariffs probably means this gain in new construction will be short-lived.
this is made clear by the fact that new housing permits fell by 5.7 percent to 1.23 million in August. Moreover, single-family home permits dropped by by 6.1 percent while multifamily permits declined by 4.9 percent.
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