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After decades of underbuilding and a recent shift to remote work, Rappaport predicts that national single-family permits could eventually rise to a long-term annual rate of 1.4 NAHB reports. million, but a number of challenges remain for regional builders across the U.S.,
NAHB: Sales Continue to Overpower Construction Starts. Low interest rates, a significant housing inventory deficit, and changing views on housing have bolstered the construction industry like no other, but the demand does not meet the reality of new construction. Combined with the low level of inventory at a 3.6-month
December 2021 saw a month-over-month increase in permits, starts, and completions, indicating a year of strong building ahead. Although supply constraints have been frustrating, builders understand that continuing low housing inventories and strong demand will continue to drive the industry forward throughout 2022.
“I think we can confidently say we're now in a housing recession,” says Robert Dietz, chief economist and SVP for Economics and Housing Policy for the National Association of Home Builders ( NAHB ). Residential building permits dropped by 15,594, or 10.1% NAHB Chairman’s Message: Members Urge Action on Housing Crisis.
Prolonged supply-chain delays, rising interest rates, and elevated construction costs have created a roadblock for single-family starts in a market desperate for new inventory. in June to a 982,000 seasonally adjusted annual rate, the slowest pace of new housing starts since June 2020, NAHB Eye on Housing reports.
A sluggish economy, a soft job market, a large inventory of foreclosed homes, the threat of additional foreclosures, and difficulty in obtaining financing for both potential homebuyers and for builders continue to act as a drag on the housing market. Meanwhile, single-family permits are holding their own at 417,000.
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