Business & Investment

Comments on the start of housing in July

NS Calculated risk of August 18, 2021 10:29:00 AM

Just a while ago: Housing starts fell to 1,534,000 annually in July

Total housing starts in July were higher than expected, but construction starts in May and June were revised slightly upwards.

The number of single-family homes increased in July, up 12% year-on-year. The start decreased at the beginning of the pandemic and then increased due to strong demand.

The volatile multi-household sector is down 16% year-on-year.

According to the housing start report, the total number of construction starts in July decreased by 7.0% from the previous month and increased by 2.5% from July 2020.

The first graph shows a monthly comparison of total start from 2020 (blue) to 2021 (red).

Click the graph to see the enlarged image.

The start in July increased by 2.5% compared to July 2020. Year-over-year comparisons are more difficult to start in the second half of 2021.

In 2020, the start was strong before the pandemic, with low interest rates and little competition with existing housing inventories, and the start of 2020 was a strong end.

The start in the first half of 2021 was solid.

The second graph shows the start of construction without seasonal adjustment (NSA).

Under constructionRed is a single house. Currently, there are 711,000 Single Family Units (NSAs) under construction. This is the highest level since 2006.

Blue is for 2 or more. Currently, 686,000 multi-household units are under construction. Last month it was 691,000 units, the highest since 1974.

In total, 1,397 million units are under construction. This is the highest since July 2006.

Comments on the start of housing in July

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