New Home Construction Creeping Towards Recovery, But Still Far Behind Residential Remodeling

Today, BuildZoom released the latest figures for the BuildZoom & Urban Economics Lab Index. The numbers show modest but continued growth in new home construction, alongside a complete recovery of existing home remodeling that has slightly slowed down.

  • Existing home remodeling has fully recovered from the housing bust, and remains 2.8% above its 2005 pre-bust level, even after a 3.2% decline last quarter.

  • In contrast, despite an 18.67% increase last quarter, new home construction remains 57% below its 2005 pre-bust level.
  • The New York and San Jose metro areas stand out for having relatively strong recoveries of both new home construction and existing home remodeling, both of which are well above the national average.
  • In Las Vegas, which was hit particularly hard by the housing bust, new home construction has hardly recovered at all since 2009, but existing home remodeling is at almost three times its 2005 pre-bust level.
  • U.S. New Home Construction And Existing Home Remodeling Permitting

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    The latest installment of the index adds New York, Los Angeles, and Las Vegas to the existing list of metropolitan areas covered. A collaborative effort by BuildZoom and the Urban Economics Lab at MIT, the index leverages BuildZoom's repository of building permit data to lend insight on the housing market and the economy at large.

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    See the full index release on BuildZoom.