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April Housing Starts: All-Time Record Housing Units Under Construction

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by Calculated Risk on 5/18/2022 09:09:00 AM

Today, in the CalculatedRisk Real Estate Newsletter: April Housing Starts: All-Time Record Housing Units Under Construction

Excerpt:

The fourth graph shows housing starts under construction, Seasonally Adjusted (SA).

Red is single family units. Currently there are 815 thousand single family units under construction (SA). This is the highest level since November 2006.

For single family, many of these homes are already sold (Census counts sales when contract is signed). The reason there are so many homes is probably due to construction delays. Since many of these are already sold, it is unlikely this is “overbuilding”, or that this will significantly impact prices (although the buyers will be moving out of their current home or apartment once these homes are completed).

Blue is for 2+ units. Currently there are 826 thousand multi-family units under construction. This is the highest level since May 1974! For multi-family, construction delays are probably also a factor. The completion of these units should help with rent pressure.

Combined, there are a record 1.641 million units under construction. This eclipses the previous record of 1.628 million units that were under construction (mostly apartments in 1973 for the baby boom generation).

There is much more in the post. You can subscribe at https://calculatedrisk.substack.com/ (Most content is available for free, so please subscribe).

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