U.S. New Home Market Continues Shrinking

The U.S. new home market continued shrinking in December 2021. Political Calculations' initial estimate of the overall market capitalizaton of the U.S. new home market for December 2021 is $26.14 billion. That figure is 13.2% below the December 2020 peak of $30.12 billion.

Trailing Twelve Month Average New Home Sales Market Capitalizaton in the United States, January 1976 - December 2021

For December 2021, there were two notable developments. First, the number of new home sales rose slightly from the previous month, breaking what had been a steady decline. Second, the average sale price of the new homes sold declined, confirming the reversal of what had been a rising trend in recent months.

The following two charts visualize the trailing twelve month averages of the U.S. new home market's underlying annualized sales and average price data.

New home sales saw a slight increase:

Trailing Twelve Month Average of the Annualized Number of New Homes Sold in the U.S., January 1976 - December 2021

New home sale prices fell significantly:

Trailing Twelve Month Average of the Mean Sale Price of New Homes Sold in the U.S., January 1976 - December 2021

In December 2021, the effect of falling average sale prices outweighed the slight increase in number of sales. Consequently, the market cap for the U.S. new home market continued its now year-long decline.