December 3, 2021
US home construction declines 1.6% in September

US home construction dips 0.7% in October

SILVER SPRING, Md. — Construction of latest properties in the U.S. fell 0.7% in October, however a giant soar in the variety of permits final month factors to anticipation by builders that provide chain issues which have dogged them for a lot of the yr will quickly ease.

October’s decline put home construction at a seasonally adjusted annual price of 1.52 million items, which is a rise of 0.4% from the speed at the moment final yr, the Commerce Division reported Wednesday. September’s quantity was additionally revised all the way down to 1.53 million items from 1.56 million items.

However in a optimistic signal of future exercise, purposes for constructing permits jumped 4% from September to 1.65 million and is up 3.4% from October of final yr.

Single-family home begins fell 3.9% from September to October and are down greater than 10% from final yr. Condominium construction has helped offset a few of these declines, with begins of buildings with 5 or extra items rising to 470,000 in October, a rise of 6.8% from September’s 440,000. Condominium construction begins are up almost 40% over this time final yr.

Construction exercise by area noticed modest declines in the Northeast, South and West, whereas the Midwest got here in 5.6% greater in October.

Low rates of interest and a need for extra space have lured patrons into the market, however rising prices for supplies and a years-long scarcity of provide have pushed costs up. Economists and builders say demand stays robust, even because the median worth for a brand new home is about 20% greater than a yr in the past.

A month-to-month survey of builder sentiment by the Nationwide Affiliation of Home Builders and Wells Fargo confirmed sentiment improved to 83 in November from a studying of 80 in October, which was additionally a rise over September’s 76. The index hit a file studying of 90 final November.

The Commerce Division points its report on new home gross sales for October later this month. In September, it reported that gross sales of latest properties jumped 14% in September to the quickest tempo in six months as robust demand helped offset rising costs.

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