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6 minutes agoAuthors: Conor Dugherty, Ben Kesselman
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Construction of houses in small cities has increased compared to big cities.
The interest in buying houses in the US has increased after a prolonged sluggishness amid the virus epidemic. Buyers want to benefit from the fall in interest rates. They are ready to settle a little bit away from big cities. Because of this, now the construction of new houses is going on after 2006. Construction of houses in small cities has increased compared to big cities. The value of houses has increased by 11.3% over the last year. Prices continue to rise as raw material and labor costs rise.
Now the attraction of staying near the office has reduced due to one year lockdown and convenience of working from home. With this a new series of construction of houses has started. According to the National Home Builders Association, construction of new houses in small towns and suburbs has increased by 15% in the last year.
In big cities this increase is 10%. US builders have started building 1.1 million single family homes this year. This is the highest since 2006. By the way, 17 lakh single family units were built in 2005. Keep in mind, the housing market was demolished in 2006 amid the good pace of construction of houses.
Builders have become more cautious after the Great Depression. So now the supply of houses is not getting as per the demand. Government housing loan company Freddie Meck estimates that by the end of 2020, 38 million homes in the US were short of demand. This decrease was more for the first time people buying a house.
20% people will work from home
The epidemic has changed the economic structure. Thousands of people fled cities in California and other places last year. Some of these people will return but will not return those who have the facility to work from home. A recent study reported that 20% of people will work from outside after the epidemic.