Washington, DC – According to the National Association of Home Builders (NAHB), housing production rebounded in March as buyer demand remains solid due to low mortgage interest rates.
According to the US Department of Housing and Urban Development and the US Census Bureau, housing starts are up 19.4% to a seasonally adjusted annual rate of 1.74 million units. The NAHB said this was the fastest pace for single-family and multi-family construction since June 2006.
According to the NAHB, within the total number of 1.74 million starts, the number of single-family homes increased 15.3% to a seasonally adjusted annual rate of 1.24 million. Single-family homes are up 19.6% from the first quarter of 2021 to the first quarter of 2020. The multi-family sector, including apartment buildings and condos, is up 30.8% to a pace of 501,000.
“Builder confidence remains strong, indicating gains for single-family construction in 2021,” said Chuck Fowke, president of NAHB. “Rising costs for most types of building materials, however, continue to hinder positive additional momentum in the market.”
Robert Dietz, Chief Economist, NAHB added, “Demand remains solid due to low mortgage rates and low inventory levels in the resale market, which is increasing the need for additional supply. The industry test this year will be a balance between growth and higher construction costs, given the ongoing challenges to housing affordability. “
On a regional basis compared to the previous month, the number of single-family and multi-family start-ups is 64% higher in the Northeast, 122.8% higher in the Midwest, 13.5% higher in the South and 13.6% lower in the West, at the NAHB. Midwest gains are likely weather related.
Total permits rose 2.7% in March to 1.77 million units year-on-year, single-family permits were up 4.6% to 1.2 million units, and multi-family permits fell 1.2% to a pace of 567,000, according to the NAHB .
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