January’s increase marked the third increase in four months. Builders also showed signs they are planning to ramp up construction later this year.
- Economists said the report was encouraging because ‘new home construction’ starts rose despite frigid January weather across many parts of the country.
- January’s numbers offer the first glimpse into the impact of a tax overhaul bill passed in late December. The bill cut individual tax rates and slashed the corporate tax rate, along with other changes benefiting small businesses.
The tax code changes could encourage builders to build more homes at the low end….home builders are able to be a little more aggressive in terms of getting out there and building homes.