Currently Reading

Apartments and Condos Lift Housing Starts

Advertisement
Economics

Apartments and Condos Lift Housing Starts

Single-family starts were down 2.8% for August while overall multifamily starts was up 21%.


September 22, 2021
aparments under construction
Photo: stock.Adobe.com

Total housing starts increased 3.9% in August due to the strength of multifamily development. 

That sector, which includes for-rent apartment buildings and condos, recorded a 539,000 annual rate for 2+ unit construction. After posting a slight decline in 2020, 5+ unit production is up 16.6% on a year-to-date basis. However, the “missing middle,” 2- to 4-unit production is approximately flat for the year (0.8% gain on a year-to-date basis).

Single-family starts were down 2.8% for the month while overall multifamily starts were up 21% in August, according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

The August figure of 1.62 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts came in at a 1.08 million seasonally adjusted annual rate. Single-family housing starts are up 23.8% on a year-to-date basis; however, the numbers are distorted by the weak readings of the Summer of 2020.

Single-family builder confidence ticked up one point to a level 76 on some easing for material prices, according to the National Home Builders Association/Wells Fargo Housing Market Index (HMI). After peaking at a level of 90 last November, builders report growing concerns over increasing lumber and other construction costs, as well as delays in obtaining building materials.

Read More

Tags

Related Stories

Market Data + Trends

Rising Interest Rates Cause Drop in Mortgage Originations

Why mortgage bankers might be seeing a lot less business.

Housing Markets

How Mortgage Rates Affect the Housing Market

As mortgage rates go up, the housing rally slows down.

Economics

Lumber and Concrete Prices Fall in September

What the latest PPI report means for construction goods.

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.