In August, single-family starts saw continued growth while overall housing production declined 5.1 percent, according to the latest U.S Housing Development and Commerce Department report.
August records 1.42 million starts if housing builders keep this pace for the next 12 months. Single-family starts increased 4.1 percent to a seasonally adjusted rate of 1.02 million, while the multifamily sector decreased 22.7 percent to a 395,000 pace.
Regionally, combined housing starts are 13.6 percent higher in the Midwest, 5.4 percent higher in the South, 3.8 percent higher in the West and 4.5 percent lower in the Northeast.
The Breakdown:
Housing Starts: 1,416,000 (-5.1% month-over-month, +2.8% year-over-year)
Multifamily Permits: 375,000
Single-Family Permits: 1,021,000
Building Permits: 1,470,000 (-0.9% month-over month, -0.1% year-over-year)
Multifamily Permits: 381,000
Single-Family Permits: 1,036,000
Completions: 1,233,000 (-7.5% month-over-month, -2.4% year-over-year)
Multifamily Completions: 312,000
Single-Family Completions: 912,000
What the Industry’s Saying
“Consistent with surging builder confidence, single-family starts rose in August to meet rising buyer traffic. Builders continue to face concerns in terms of rising lumber prices and supply chain shortages of other building materials.” — Chuck Fowke, Chairman, National Association of Home Builders
“Total housing starts were down in August on a decline for multifamily construction, with multifamily five-plus unit permits now down 8.3 percent on a year-to-date basis. But low interest rates and solid demand are spurring single-family construction growth, which makes up the bulk of the housing market. Single-family permits continue to rise as well and are now up almost 7 percent on a year-to-date basis.” — Robert Dietz, Chief Economist, National Association of Home Builders
“With such low levels of inventory across the country, this continued construction is needed to maintain the momentum of home sales we experienced throughout the summer. It will also play an especially important role in making sure home prices remain affordable for buyers, and not counteract the savings gained from historically low interest rates.” — Bill Banfield, Executive Vice President of Capital Markets, Quicken Loans
To see the full report, click here.
