According to the Department of Housing and Urban Development and the US Census Bureau, the sector of home construction has taken a rebound in May. After declining in March with the outbreak of COVID-19 and halts that took over a great part of the industry of construction, reports are showing signs of recovery with the mid-second quarter of 2020. After noted declines in construction activity, May has brought an increasing number of building permits, signifying a clear rise in construction activity.
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Signs of Recovery of the Construction Industry Noted in May
After a steep decline in construction activity noted in March with the COVID-19 outbreak taking place in the US and worldwide, reports from May are showing that the industry is slowly recovering. The US Census Bureau and the Department of Housing and Urban Development released data from May, sharing a rise by 14.4% in the number of building permits. Still, despite the recent increase, the number of building permits is down by over 8% when compared to the number s recorded in May 2019.
Zillow Claims the Builders’ Confidence is on the Rise
Matthew Speakman, an economist at Zillow, stated that the confidence of builders is on the rise with recent weeks, adding that the industry has shown signs of recovery only two months after a steep decline in activity as caused by shutdowns. Low mortgage rates and the rising demand for new homes is fueling the recovery in the sector of home construction.
Housing Market Recovering but Still Underperforming
The housing market leaped by over 4% in May when compared to April 2020. However, despite the recent rises, May reports for 2020 are still 23% down when compared to the housing market in May 2019. Housing is well-positioned to lead the industry to a full recovery even though it may take it an entire year to take a complete rebound.
