Privately owned housing starts in August were at a seasonally adjusted annual rate of 1,615,000, which is 3.9% above the revised July estimate of 1,554,000 and 17.4% above the August 2020 rate of 1,376,000, according to the latest new residential construction data from the U.S. Census Bureau and the Department of Housing and Urban Development.
Single‐family housing starts last month were at a rate of 1,076,000, or 2.8% below the revised July figure of 1,107,000. The August rate for units in buildings with five units or more was 530,000.
“While single-family starts remain below their recent peak hit in December 2020, the broader trend in recent months is holding steady at a pace that is still more than 20% higher than the 2019 pre-COVID average,” says Mark Palim, deputy chief economist at Fannie Mae. “Continued strong house price appreciation and limited supply of existing homes for sale should continue to drive demand for new homes going forward.”
Housing units authorized by building permits in August were at a seasonally adjusted annual rate of 1,728,000, which is 6% above the revised July rate of 1,630,000 and 13.5% above the August 2020 rate of 1,522,000. Single‐family authorizations last month were at a rate of 1,054,000, or 0.6% above the revised July figure of 1,048,000. Authorizations of units in buildings with five units or more were at a rate of 632,000.
August’s housing completions were at a seasonally adjusted annual rate of 1,330,000, which is 4.5% below the revised July estimate of 1,392,000 but 9.4% above the August 2020 rate of 1,216,000. Single‐family housing completions last month were at a rate of 971,000, or 2.8% above the revised July rate of 945,000. The August rate for units in buildings with five units or more was 356,000.
“The multifamily starts series is notoriously volatile, but the large increase over the month is consistent with ongoing strength in rent growth and low vacancy rates,” continues Palim. “We expect multifamily construction to continue to be strong over the coming quarters even in the face of continued supply constraints.”
