Housing starts increased 3.9% in August to a seasonally adjusted annual rate of 1.6 million, the U.S. Census Bureau reported.
The rate is up 17.4% compared with August 2020. August’s rate was bolstered by strong multifamily production, which surged 20.6% to a 539,000 pace, according to the National Association of Home Builders. Single family housing starts fell 2.8% month-over-month, but climbed 23.8% year-to-date.
"Single-family construction is normalizing at more sustainable levels after an increase in building material pricing," NAHB Chairman Chuck Fowke said in a statement. "Demand remains strong, but the market is facing increasing housing affordability issues after a run-up in new and existing home prices. Multifamily construction increased in August, with NAHB expecting a solid gain for apartment construction in 2021 after a slight decline last year."
Regionally, year-over-year housing starts increased 35.9% in the Northeast, 14.0% in the Midwest, 20.2% in the South and 23.9% in the West.
The number of building permits grew to a rate of 1.7 million in August, a 6.0% increase from July and a 13.5% increase from August 2020.
Housing completions fell 4.5% in August to a rate of 1.3 million, but increased 9.4% compared with August 2020.
