Housing starts picked up in June after two consecutive months of declines according to a new government report released this week. Despite the increase, construction activity remains stifled due to ongoing labor shortages and rising land costs. This latest information comes from data released by the Department of Commerce this week.
Demand for new housing has driven homebuilders to focus less on construction of rental units and primarily on single-family homes. Starts of single-family houses have climbed 7.9 percent in 2017, compared to 4.2 percent for multi-family dwellings.
According to the San Diego Regional Chamber of Commerce and Greater San Diego Association of Realtors, the region is on pace to produce only 50 percent of the units needed to meet population growth in the coming years.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4 percent while 15-year rates are near 3.25 percent.
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