U.S. sees surge in home construction; supply still lags in Lincoln

LINCOLN, Neb. (KLKN) — New data from the Census Bureau shows that U.S. home building surged in May, but the scenario is unique in Lincoln.

New home construction climbed nearly 22% nationally. That’s the most growth we’ve seen month to month in more than a year.

A local Realtor says we are seeing the trend in Lincoln, too — but there’s a catch.  

“New construction is up in Lincoln,” said Kim Zwiener with KZ Realty. “The bad news is all of that new construction comes on the market under contract.” 

So if you’re looking for a new home, this new influx won’t help you.

Zwiener said the inventory of new houses coming to the market is actually behind demand.

Another concern with these new built houses is the cost.

“The year-to-date average for new construction of properties is about $441,000,” Zwiener said. “That’s a 5% percent increase in the value of new construction over last year.”

Zwiener said Realtors expect prices to reach a 10% increase by the end of this year. 

“The average-income home in Lincoln last year could afford 91% of the price of a new construction,” Zwiener said. “However, this year we are down to 77%.”