The business environment for homebuilders has been steadily improving, according to Business Insider.
Stock values for home builders have been gaining and an eight-month rally has been occurring. Further examples of the growth in building construction can be found in the U.S. Housing and Urban Development's monthly report on building permits, housing starts and housing completions.
Building permits increased in April by 23.7 percent on a year-over-year basis compared to April 2011. Single-family authorizations, which have been greatly demanded in the real estate market, increased 1.9 percent for April. Further, authorizations of single-family units in buildings with five units or more have been in demand as well, this is likely a result of the increase in demand for single-family rental properties.
Residential housing starts have been increasing, providing the market with a steady flow of inventory. Housing starts increased 2.6 percent in March and 29.9 percent over the April 2011 rate. Single-family housing starts increased 2.3 percent in April. This increase again highlights the demand for single-family homes and rental properties.
Finally, housing completions increased 10 percent in April and are 20.1 percent above the rate in April 2011. Single-family housing completions increased 11.4 percent in April.
As stock values for homebuilders gain and construction activity increases at a steady pace, it appears that the rate of construction will continue to keep pace with home sales, keeping a steady inventory available in the real estate market for continued future housing market recovery and growth.