Housing starts increase while supply issues linger

Home News Housing starts increase while supply issues linger

startsWashington, D.C.—Overall housing starts increased 6.3% in June to a seasonally adjusted annual rate of 1.64 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Despite the increase in housing production, there is concern over weakening permit numbers for both the single-family and multifamily markets.

The June reading of 1.64 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months, according to the National Association of Home Builders (NAHB). Within the overall number, single-family starts increased 6.3% to a 1.16 million seasonally adjusted annual rate. The multifamily sector, which includes apartment buildings and condos, increased 6.2% to a pace of 483,000.

“While lumber prices have just recently begun to trend downward, builders continue to deal with rising prices of other building materials such as oriented strand board and major delays in the delivery of these goods,” said Chuck Fowke, NAHB chairman. “We are thankful that the White House recently held a meeting to seek solutions to these supply chain issues that are harming housing affordability.”

Robert Dietz, NAHB chief economist, added, “The recent weakening of single-family and multifamily permits is due to higher material costs, which have pushed new home prices higher since the end of last year. This is a troubling sign for future housing production. This is a challenge for a housing market that needs additional inventory.”

On a regional and year-to-date basis (January through June of 2021 compared to that same time frame a year ago), combined single-family and multifamily starts are 41.4% higher in the Northeast, 25.5% higher in the Midwest, 21.5% higher in the South and 28% higher in the West.

Overall permits decreased 5.1% to a 1.60 million-unit annualized rate in June. Single-family permits decreased 6.3% to a unit rate of 1.06 million. Multifamily permits decreased 2.6% to a pace of 535,000.

Looking at regional permit data on a year-to-date basis, permits are 33.2% higher in the Northeast, 31.9% higher in the Midwest, 29.6% higher in the South and 32.2% higher in the West.

The count of single-family homes currently under construction is 675,000—up 32% compared to a year ago. The number of multifamily units under construction is up 2% to 684,000 apartments.

Must Read

David Gross named INSTALL executive director

Washington, D.C.—INSTALL appointed David Gross as its new executive director. Gross began his new position on Dec. 1, 2022, upon the retirement of the...

Mohawk debuts new SmartStrand Color Wall 

Calhoun, Ga.—Mohawk is investing in the powerhouse product brand with a state-of-the-art merchandising destination, the SmartStrand Color Wall. Designed to elevate the overall shopping...

Sika launches MB EZ Rapid

Chino, Calif.—Sika introduced MB EZ Rapid, a single-component, rapid-drying moisture barrier, adhesion promoter and substrate consolidator for all floor covering installations over critical substrates...

Jay Kopelson to receive WFCA Luminary Award

Las Vegas—World Floor Covering Association (WFCA) announced that Jay Kopelson, VP of corporate accounts at Mannington Mills, will receive its Luminary Award. The Luminary...

Tackling TISE: Show strategies from veteran show goers

Las Vegas—The pace of The International Surface Event (TISE) can resemble a track meet at times as attendees traverse the expansive Mandalay Bay Convention...

New and notable at TISE 2023

Along with the anticipated uptick in attendance at The International Surfaces Event (TISE) 2023 comes an increase in exhibitors as well, especially new vendors....
Some text some message..
X