Residential construction stabilising despite lingering supply-chain constraints and labour shortages

United States housing starts have jumped in June by 6.3 per cent to a 1.64 million annualized rate, representing a three-month high, based on the latest estimates coming out of the US Census Bureau and the US Department of Housing and Urban Development.

This jump of 6.3 per cent is much more than forecasted and is indicative of the fact that residential construction is stabilising despite lingering supply-chain constraints and labour shortages. The US Census Bureau and the US Department of Housing and Urban Development today (July 20) jointly announced the new residential construction statistics for June 2021, which shows that building permits privately owned housing units were at a seasonally adjusted annual rate of 1,598,000. 

This is 5.1 per cent (±1.1 per cent) below the revised May rate of 1,683,000, but is 23.3 per cent (±0.9 per cent) above the June 2020 rate of 1,296,000, according to the data released. Single‐family authorisations in June were at a rate of 1,063,000; this is 6.3 per cent (±1.4 per cent) below the revised May figure of 1,134,000.  

Privately owned and single family housing starts

Authorisations of units in buildings with five units or more were at a rate of 483,000 in June. Privately‐owned housing starts in June were at a seasonally adjusted annual rate of 1,643,000. This is 6.3 per cent (±11.5 per cent) above the revised May estimate of 1,546,000 and is 29.1 per cent (±11.2 per cent) above the June 2020 rate of 1,273,000.  

Single‐family housing starts in June were at a rate of 1,160,000; this is 6.3 per cent (±11.7 per cent) above the revised May figure of 1,091,000. The June rate for units in buildings with five units or more was 474,000.  

Privately‐owned housing completions in June were at a seasonally adjusted annual rate of 1,324,000.  This is 1.4 per cent (±10.5 per cent) below the revised May estimate of 1,343,000, but is 6.5 per cent (±13.9 per cent) above the June 2020 rate of 1,243,000.  

Single‐family housing completions in June were at a rate of 902,000; this is 6.1 per cent (±10.2 per cent) below the revised May rate of 961,000. The June rate for units in buildings with five units or more was 416,000. The next report for July is scheduled for release on August 18, 2021.