Double-digit gains for single-family production
Washington, DC – According to the National Association of Home Builders (NAHB), multi-family and single-family home production accelerated in November due to strong demand for new construction. According to a report by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, total home purchases increased 11.8% to a seasonally adjusted annual rate of 1.68 million units.
The November reading of 1.68 million starts is the number of home builders who would start if development continued at this pace over the next 12 months. Within this total number, the number of single-family homes rose by 11.3% to a seasonally adjusted annual figure of 1.17 million. The multifamily sector, which includes condominiums and condominiums, grew 12.9% to 506,000 year-over-year.
Mirrored by the HMI reading of construction sentiment, single-family homes will start accelerating toward the end of 2021 and are up 15.2% year-to-date as new construction demand remains strong thanks to a meager inventory of resale homes,” said NAHB- chairman, Chuck Fowke. “Policymakers must help reduce the lingering bottlenecks in the construction materials supply chain that prevent builders from meeting buyer demand.”
On a regional and year-to-date basis (January to November 2021 compared to the same period a year ago), combined single-family and multi-family starts are 24.4% higher in the Northeast, 9.6% higher in the Midwest, 15, 4% higher in the south and 19.4% higher in the west, according to NAHB.
“By breaking an eight-year trend, there have been more single-family homes under construction than multi-family homes in recent months,” said NAHB chief economist Robert Dietz. “In addition, the continued strength of single-family construction in 2021, despite some cooling off earlier this year, means that there are now 28% more single-family homes under construction than a year ago. These gains mean that the completion of single-family homes will increase in 2022, bringing more inventory to market, despite a year-over-year increase in building material costs of 19% and longer construction times.”
According to NAHB, total licenses increased 3.6% to 1.71 million units year-on-year in November and single-family licenses increased 2.7% to 1.10 million units. The company also said multifamily permits are up 5.2% to 609,000 year-over-year.
Looking at regional permit data year-on-year, NAHB said permits are up 13.6% in the Northeast, 16.3% higher in the Midwest, 19.3% higher in the South and 22.4% higher in the West.