The new-home market is booming as states wind down sheltering-in-place restrictions, easing the search for a new home. Sales of newly built single-family homes last month jumped nearly 13% over 2019—that is the strongest May since 2007, according to newly released data from the U.S. Census Bureau.
However, while sales are rebounding, housing starts—the construction of new homes—posted a lackluster month, showing that builders are struggling to keep up with the quick resurgence in buyer demand. The strong rebound has caught builders off guard. Single-family housing starts in May were about 18% lower annually and building permits, a sign of future construction, was down about 10%.