Housing starts take a big step forward in November
Housing starts surged ahead in November despite numerous challenges facing home builders.
Privately-owned housing starts increased 11.8% to a seasonally adjusted rate of 1.679 million from the revised October estimate of 1.502 million starts, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development reported this morning.
The latest monthly New Residential Construction report also shows that total housing starts are 8.3% above the November 2020 rate of 1.551 million.
Single-family starts jumped 11.3% to a rate of 1.173 million from the revised October figure of 1.054 million. Multifamily starts, including apartment buildings and condos, increased 12.9% to a rate of 506,000.
November housing permits rose 3.6% to a seasonally adjusted rate of 1.712 million from a revised October rate of 1.653 million. The figures are also 0.9% higher than the November 2020 rate of 1.696 million.
Single-family permits for the month are up 2.7% to a rate of 1.103 million in comparison to the revised October rate of 1.074 million. Multifamily permits increased 5.2% to an annualized pace of 609,000.
The National Association of Home Builders reported yesterday that home builder confidence move one point higher to 84 in December, according to the latest National NAHB/Wells Fargo Housing Market Index (HMI). This report tied February for the highest reading in 2021.
The increase in builder sentiment also occurred despite the residential construction industry facing a labor shortage, lack of available lots, supply chain delays, and inflation.
Here’s how November starts and permits break down by region compared to the prior month:
In the Northeast, total starts soared by 27.5% as single-family starts leaped 26.9%. Combined permits were up 12.4% as single-family permits broke even with the prior month.
In the Midwest, total starts fell 7.3% but single-family starts edged upwards by 1.3%. Total permits fell by 8.1% but single-family permits grew by 5.3%.
In the South, total starts jumped ahead by 18.4% as single-family starts ascended 14.4%. Overall permits increased 4.9% while single-family permits saw a slight rise of 0.8%.
In the West, total starts increased 5.1% as single-family starts moved ahead 5.7%. Total permits moved up by 4.6% as single-family permits saw a 7.1% increase.