Housing production cools as costs climb

HomeNewsHousing production cools as costs climb
housing production
Housing production fell in April due to the increased costs of building materials.

Washington, D.C.—Housing production fell in April due to the increased costs of building materials that have priced out potential home buyers, according to the National Association of Home Builders (NAHB). Overall housing starts in April decreased 9.5% to a seasonally adjusted annual rate of 1.57 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

The April reading of 1.57 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts decreased 13.4% to a 1.09 million seasonally adjusted annual rate. The multifamily sector, which includes apartment buildings and condos, increased 0.8% to a 482,000 pace.

“Housing starts and permits posted a monthly decline in April, as escalating prices for lumber and other building materials price out some home buyers from an otherwise hot housing market,” said Chuck Fowke, NAHB chairman. “Policy makers need to prioritize the U.S. supply chain for items like building materials to ensure builders can add the additional inventory the housing market desperately needs.”

Robert Dietz, NAHB chief economist, added, “The decline in single-family permits indicates that builders are slowing construction activity as costs rise. While housing starts were strong at the beginning of the year, due to home builders constructing homes that were sold pre-construction, higher costs and limited availability of building materials have now paused some projects.”

Overall permits increased 0.3% to a 1.76 million unit annualized rate in April. Single-family permits decreased 3.8% to a 1.15 million unit rate. Multifamily permits increased 8.9% to a 611,000 pace.

Looking at regional permit data compared to the previous month, permits are 8.4% higher in the Northeast, 9.9% lower in the Midwest, 3.9% higher in the South and 4.1% lower in the West.

In terms of housing production, the number of single-family homes permitted but not started construction continued to increase in April, rising to 131,000 units. This is 47% higher than a year ago, as building material cost increases and delays slow some home building.

Must Read

WW Flooring Group earns NWFA/NOFMA mill certification

St. Charles—WW Flooring Group, manufacturer of Maine Traditions, is the latest company to earn NWFA/NOFMA Mill Certification from the National Wood Flooring Association. NWFA/NOFMA certification...

Tarkett launches new playful collections to promote joyful learning

Solon, Ohio—Tarkett has launched a series of collections that were designed to help achieve optimal education spaces—from fostering joy and playfulness to promoting calm...

Havwoods appoints Rebecca Jeffery head of UK, U.S. marketing

New York, N.Y.—Havwoods, a leading global wood flooring specialist, announced the appointment of Rebecca Jeffery as head of UK and U.S. marketing. With an...

Tennessee representative honored as ‘friend of the tile industry’

Clemson, S.C.—The Tile Council of North America (TCNA) recently honored Tennessee sixth congressional district representative John Rose as a “friend of the U.S. tile...

Coverings unveils 2025 product preview

Orlando, Fla.—Coverings, North America’s largest international tile and stone conference, has revealed a select preview of new tile and stone products alongside a sneak...

NeoCon 2025 programming registration now open

Chicago—NeoCon, the premier event for commercial design, has opened registration for its expansive on-site and virtual conference program. Embracing this year’s theme—"Design Ahead”—the NeoCon...
Some text some message..
X