Home National housing US housing starts in August accelerate thanks to multi-family development

US housing starts in August accelerate thanks to multi-family development

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Strong multi-family housing production helped push up overall housing starts in August, as single-family housing starts edged down amid persistent supply chain issues and labor concerns. artwork. The total number of housing starts rose 3.9% to a seasonally adjusted annual rate of 1.62 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

August’s reading of 1.62 million housing starts is the number of housing unit builders would start if development maintained this pace for the next 12 months. In that overall number, single-family home starts fell 2.8% to a seasonally adjusted annual rate of 1.08 million, but are up 23.8% year-to-date. The multi-family sector, which includes apartment buildings and condos, increased 20.6% to 539,000.

“Single-family construction is normalizing to more sustainable levels after rising prices for building materials,” said Chuck Fowke, president of the National Association of Home Builders (NAHB) and builder of custom homes of Tampa, Florida. “Demand remains strong, but the market faces growing housing affordability issues after prices for new and existing homes skyrocket. Multi-family housing construction rose in August, with NAHB expecting a gain. solid for apartment construction in 2021 after a slight decline last year.

“More inventory is coming for a market that continues to face a housing deficit,” said Robert Dietz, chief economist of the NAHB. “The number of single-family homes under construction in August – 702,000 – is the highest since the Great Recession and is 32.7% higher than a year ago. While some building materials, such as lumber, have seen their prices drop, delivery delays and a lack of skilled labor and building land continue to hold back the market. “

On a regional basis and since the start of the year (January to August 2021 compared to the same period a year ago), combined single-family and multi-family housing starts are 35.9% higher in the Northeast, 14.0% higher in the Midwest. , 20.2% more in the South and 23.9% more in the West.

All permits increased six percent to an annualized rate of 1.73 million units in August. Permits for single-family homes increased 0.6 percent to a unit rate of 1.05 million. Multi-family permits increased 15.8 percent to a pace of 674,000.

Looking at regional permit data since the start of the year, permits are 25.6% higher in the Northeast, 21.7% higher in the Midwest, 25.6% higher in the south and 28.1% higher in the west.

Single-family units licensed but not started were up 50.0% from a year ago, a sign of continuing supply chain issues.


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