In August, homebuilders are seeing signs of recovery.
According to a study from the Census Bureau and the Department of Housing and Urban Development, residential construction rose in August, indicating signs of recovery after declining in July.
Building permits for privately owned homes increased by 6% to 1,728,000, up from 1,630,000 in July and up 13.5 percent over August 2020’s rate of 1,522,000 permits.
Single-family dwelling permits were issued at a rate of 1,054,000, an increase of 0.6 percent over the previous month’s record of 1,048,000.
Housing starts for private dwellings reached 1,615,000, up 3.9 percent from July’s expected 1,554,00 and 17.4 percent more than August 2020’s average of 1,376,000.
Single-family home starts, on the other hand, fell 2.8 percent to 1,076,000 in August, compared to 1,107,000 in July.
Housing completions for privately owned homes fell 4.5 percent in August to 1,330,000, missing the July forecast of 1,392,000 but up 9.4% from August 2020.
Single-family dwelling completions increased by 2.8 percent to 971,000 from 945,000 in July.
A total of 356,000 units were completed in buildings with five or more units.
“In the face of shifting costs, the pace of new construction reflected homebuilder movements toward higher profit projects. Builders requested permits for additional multifamily projects as mood among homebuilders dipped in August due to fears about dwindling buyer traffic and sales,” George Ratiu, manager of economic analysis for Realtor.com, said in an email.
“However, as home construction companies work through their order backlog and look forward to higher traffic heading into 2022, this week’s September confidence data show a bounce is in the works.”