New home construction highest in four years - KWWL - Eastern Iowa Breaking News, Weather, Closings

New home construction highest in four years

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CEDAR FALLS (KWWL) -

Construction for new homes across the nation has reached the highest it's been since 2008.

According to a report released by the Commerce Department, the number of homes started increased by 15 percent from August, making this the fastest growth of new construction in the housing market since July of 2008. 

"There's a lot of demand," said Craig Fairbanks, owner of Craig Fairbanks Homes in Cedar Falls. Fairbanks has been building hundreds of custom homes for almost 40-years. He said he's not surprised that a recent report released by the government indicates a surge in new home construction.

"It's been extremely busy so there's not a lot of time to sit down and handle things," said Fairbanks. "But it's better than not being busy, that's for sure!"

Fairbanks said he's been busy building homes "non-stop" since June. He credits the low interest rates at the bank for the boom in business.

"In my lifetime I've never seen interest rates this low. My first loan was six percent and that was a good loan back then. Now you're talking about three percent for 15-year mortgages. That's incredible...it's just unbelievable," he said.

Atul Patel is taking advantage of low interest rates and building a home for his family in Cedar Falls.

"We couldn't find a house that we liked, and for the price we could build it," he said.

Patel is building a six-bedroom, three-bathroom house in Cedar Falls. He expects it to be finished by February or March.

Patel said building was an "economical option."

"People can buy, people can build, people can sell as well," he said. "This is a good time to buy and build...and good interest rates, too."

Fairbanks said he expects the market in new home construction to stay steady, however, he is concerned about a lot shortage.

"We're running out of places to build," he said.

Regardless, Fairbanks said, if someone is looking to build a home there is not a better time to do it than while interest rates are at a record low.

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