Builders
started construction of privately-owned housing units in
June at a seasonally adjusted annual rate (SAAR) of 1,643,000 units (1.68
million expected).
This is 6.3% (±11.5%)* above the revised May estimate of 1,546,000 (originally
1.572 million units) and 29.1% (±11.2%) above the June 2020 SAAR of 1,273,000
units; the not-seasonally adjusted YoY change (shown in the table above) was +28.5%.
Single-family
housing starts in June were at a SAAR of 1,160,000; this is 6.3% (±11.7%)*
above the revised May figure of 1,091,000 units (+28.0% YoY). Multi-family: 483,000
units (+6.2% MoM; +29.7% YoY).
* 90% confidence interval (CI) is not statistically different from zero. The Census Bureau does not publish CIs for the entire multi-unit category.
Total
completions were at a SAAR of 1,324,000 units. This is 1.4% (±10.5%)* below the
revised May estimate of 1,343,000 (originally 1.368 million units), but 6.5%
(±13.9%)* above the June 2020 SAAR of 1,243,000 units; the NSA comparison: +5.6%
YoY.
Single-family housing completions were at a SAAR of 902,000 units; this is 6.1% (±10.2%)* below the revised May rate of 961,000 units (-3.8% YoY). Multi-family: 422,000 units (+10.5% MoM; +32.2% YoY).
Total
permits were at a SAAR of 1,598,000 units (1.750 million expected). This is 5.1%
(±1.1%) below the revised May rate of 1,683,000 (originally 1.750 million
units), but 23.3% (±0.9%) above the June 2020 SAAR of 1,296,000 units; the NSA
comparison: +21.9% YoY.
Single-family permits were at a SAAR of 1,063,000; this is 6.3% (±1.4%) below the revised May figure of 1,134,000 units (+23.7% YoY). Multi-family: 535,000 units (-2.6% MoM; +18.2% YoY).
Strong
buyer demand helped to offset supply-side challenges relating to building
materials, regulation and labor as builder confidence in the market for newly
built single-family homes inched down one point to 80 in July, according to the
NAHB/Wells Fargo Housing Market Index.
“Builders
continue to grapple with elevated building material prices and supply
shortages, particularly the price of oriented strand board, which has
skyrocketed more than 500% above its January 2020 level,” said NAHB Chairman Chuck
Fowke. “We are grateful that the White House heeded our urgent plea to hold
a building materials meeting with interested stakeholders on July 16 to seek
solutions to end production bottlenecks that have harmed housing
affordability.”
“Builders
are contending with shortages of building materials, buildable lots and skilled
labor as well as a challenging regulatory environment. This is putting upward
pressure on home prices and sidelining many prospective home buyers even as
demand remains strong in a low-inventory environment,” said NAHB Chief
Economist Robert Dietz.
The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.
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