Housing starts ticked up 1.2% in November to a seasonally adjusted annual rate of 1.54 million, the U.S. Census Bureau reports. Year-over-year, housing starts grew 12.8%.
"The single-family construction sector appears to be leveling off at strong levels, with permits roughly at a flat level from September to October," stated Robert Dietz, chief economist for the National Association of Home Builders. "Nonetheless, the growth for single-family construction was a true bright spot amid economic challenges in 2020, with single-family starts up 10% year-to-date and posting the best year since the Great Recession.”
Regionally, housing starts grew year-over-year in the Midwest (14.4%), South (7.6%) and West (5.4%). Housing starts in the Northeast declined 3.3% compared with November 2019.
Building permits increased 6.2% from October and 8.5% year-over-year.
The NAHB stated that increased construction costs and shortages of lots and labor are causing a backlog as builders struggle to meet demand.
Housing completions in November dropped 12.1% from October to an adjusted rate of 1.1 million. The rate is 4.8% below the November 2019 housing completion rate.
The full Census Bureau report can be found here.
