Milwaukee, Wisconsin 2021-06-16 11:00:27 –
Written by MARTIN CRUTSINGER
AP Economics Writer
Washington (AP) — US home construction in May rose 3.6% as it fought against rising timber prices that made homes more expensive.
The Commerce Department reported on Wednesday that it would increase construction on the left with a seasonally adjusted annual rate of 1.57 million units in May.
Building permit applications looking for signs of future activity fell 3% in May to a seasonally adjusted annual rate of 1.68 million units.
Housing was one of the outstanding performers during the recession caused by the pandemic.
However, many economists believe that homebuilding and sales spikes over the past year could begin to slow, especially in single-family homes.
Nancy Vanden Horten, lead economist at Oxford Economics, said: “Strong demand, inventory needs, and homebuilder optimism keep floors active, but builders continue to face supply constraints that can hinder or at least postpone construction.”
The builder is getting one break. Timber prices, which have soared to record levels this year, have begun to fall, suggesting that the speculative bubble in timber prices is beginning to shrink.
According to a survey by the National Association of Home Builders / Wells Fargo this week, a survey by the National Association of Home Builders found that builders’ confidence in June fell by 2 points to 81, still high.
This year, the roller coaster is undergoing construction activities. The overall 3.6% increase in construction starts in May boosted housing starts to 1.73 million units annually, following a 12.1% plunge in April and a 19.2% surge in March. This is the fastest pace since the mid-term housing boom. 2000s.
The 3.6% increase in May reflects a 4.2% increase in single-family home construction to 1.1 million units and a 4% increase in apartment construction to 465,000 units.
By region, housing construction plummeted 22.4% in the northeast, but rose in all other regions. A 29.9% increase in the Midwest has benefited. Construction increased by 3.8% in the south and 1% in the west.
The National Association of Real Estate Agents released a report on Wednesday claiming that there was a “under-building gap” between 5.5 million and 6.8 million housing units due to decades of underinvestment in home construction.
Since the turn of the century, the country’s housing inventory growth has slowed significantly, affecting all parts of the country, according to the report.
“American housing stock is … disastrous due to the chronic shortage of affordable housing,” the report said, recommending authorities work to remove barriers to new developments. I am.