{"id":2945,"date":"2022-03-17T14:44:38","date_gmt":"2022-03-17T14:44:38","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2022\/03\/17\/single-family-housing-starts-hit-highest-level-since-2006\/"},"modified":"2025-03-13T02:41:01","modified_gmt":"2025-03-13T02:41:01","slug":"single-family-housing-starts-hit-highest-level-since-2006","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2022\/03\/17\/single-family-housing-starts-hit-highest-level-since-2006\/","title":{"rendered":"Single-family housing starts hit highest level since 2006"},"content":{"rendered":"\n<p>Well, that&#8217;s encouraging. After dropping 4.1% in <a href=\"https:\/\/www.reuters.com\/business\/us-housing-starts-fall-january-amid-freezing-weather-permits-surge-2022-02-17\/\" target=\"_blank\" rel=\"noreferrer noopener\">January<\/a>, housing starts were back up in February, rising 6.8% month over month to a seasonally adjusted annual rate of 1.769 million according to a <a href=\"https:\/\/www.census.gov\/construction\/nrc\/pdf\/newresconst.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">report<\/a> released Thursday by the\u00a0<strong>U.S. Department of Housing and Urban Development<\/strong>\u00a0and the\u00a0<strong>U.S. Census Bureau.<\/strong><\/p>\n\n\n\n<p>This is 22.3% above the rate recorded a year ago.<\/p>\n\n\n\n<p>\u201cThe number of single-family homes under construction increased to the highest level since 2006,\u201d <strong>First American<\/strong> deputy chief economist Odeta Kushi said in a statement. \u201cWhile builders are continuing to push to meet demand, supply-side headwinds slow the home-building momentum at a time when the housing market desperately needs more supply relief.\u201d<\/p>\n\n\n\n<p>Construction of single-family homes rose 5.7% from January to 1.215 million units. The multifamily sector, which includes apartment buildings and condos, also saw an increase, rising 9.3% to an annualized pace of 554,000. This is the best rate of apartment construction since January 2020.<\/p>\n\n\n\n<p>\u201cBuilders continue to start homes as the demand for new construction remains solid in a market lacking inventory of previously owned homes,\u201d Jerry Konter, chairman of the <strong>National Association of Home Builders<\/strong> (NAHB), said in a statement. \u201cHowever, construction costs are rising too quickly, which threatens housing affordability conditions in 2022 as interest rates rise.\u201d<\/p>\n\n\n\n<p>The number of building permits issued in February came in at a seasonally adjusted rate of 1.859 million, a 1.9% drop from the month prior, but still 7.7% above the February 2021 rate.<\/p>\n\n\n\n<p>\u201cOn the single-family front, the count of homes permitted but not started construction reached a four-month high in February, rising to 152,000,\u201d NAHB chief economist Robert Dietz said in a statement. \u201cThis is an indication of the ongoing supply-chain delays and cost issues that are limiting the pace of home building in many markets.\u201d<\/p>\n\n\n\n<p>Housing completions came in at a seasonally adjusted rate of 1.309 million, a 5.9% month-over-month increase. However, it remains 2.8% below the February 2021 rate.<\/p>\n\n\n\n<p>Despite these promising numbers, in March, <a href=\"https:\/\/preprod.realtrends.com\/blog\/despite-wealth-of-buyers-homebuilder-sentiment-drops-again\/\" target=\"_blank\" rel=\"noreferrer noopener\">homebuilder sentiment<\/a> in the market for newly built single-family homes dropped below the 80-point mark for the first time since September 2021 according to the <strong>National Association of Home Builders<\/strong>\u00a0(NAHB) and\u00a0<strong>Wells Fargo Housing Market Index<\/strong>\u00a0(HMI) report. Experts say that continued <a href=\"https:\/\/preprod.housingwire.com\/articles\/its-crazy-homebuilders-big-and-small-struggle-to-finish-projects\/\" target=\"_blank\" rel=\"noreferrer noopener\">supply chain issues<\/a>, <a href=\"https:\/\/preprod.housingwire.com\/articles\/skilled-labor-is-returning-to-homebuilding\/\" target=\"_blank\" rel=\"noreferrer noopener\">labor shortages<\/a>, rising material costs and <a href=\"https:\/\/preprod.housingwire.com\/articles\/mortgage-rates-rise-31-bps-to-4-16\/\" target=\"_blank\" rel=\"noreferrer noopener\">rising interest rates<\/a> are to blame.<\/p>\n\n\n\n<p>\u201cAs mortgage rates rise, all else held equal, house-buying power falls,\u201d Kushi said in a statement. \u201cHomebuilder confidence fell in March as builders continue to face supply chain disruptions, price increases, and concerns that declining affordability will price out buyers.\u201d<\/p>\n\n\n\n<p>Regionally, housing starts saw month-over-month increases of 28.7% in the Northeast, 15.3% in the Midwest, 11.4% in the South and a 11.4% decrease in the West.<\/p>\n\n\n\n<p>Nationwide there are currently 799,000 single-family homes under construction, up 28.3% compared to a year ago.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The number of single-family homes under construction increased to the highest level since 2006, but supply-side headwinds are slowing the housing starts momentum.<\/p>\n","protected":false},"author":34740,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[1760],"class_list":["post-2945","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.8) - 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