Housing Market Bounces Back

National Home Market recovers with new designs that cater to extended families.
3:00 | 10/22/12

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Transcript for Housing Market Bounces Back
market, that was at the center of the meltdown. Well, parts of it are not surging. Last month, new home construction was up 15%. That's a four-year high. And abc's matt gutman reporting tonight on the new building boom right here at ground zero, in florida. Reporter: This woman needed just one look. I feel in love immediately. Reporter: Consider it the new american dream house, both downsized and supersized. You see, her new tiny three-bedroom house is just 1,800 square feet. Down 500 from their average house built before the recession. But it is a full house, populated by three generations, plus the dog. The price was right. 143,000. A mortgage of just $1,200 a month. Half the price. It was half the price. Reporter: Wow. She's one of the byers fueling the demand for new construction. We've seen over a 20% increase in sales from year over year. Reporter: And that, in one of the states hardest hit by the housing bust. Much of the growth is fueled by record low mortgage rates and pent up demand for new homes. And, of course, the price. How much would that have been five years ago? Five years ago, that home probably would have been in the HIGH 200s. Reporter: Twice the price. This woman specifically sought a house to accommodate her parents. We are a united family and we all cooperate. Reporter: In fact, multigenerational homes are in such demand that miami-based lennar has rolled out next gen, a house designed for three generations. They've been selling these homes at a pace up to three times faster than just a couple of years ago. And that surge in housing starts is arguably the best economic news in years, david, but is it soon enough and big enough to help president obama win the biggest battleground prize of them all, florida?

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