Photo: Justin Sullivan / Getty Images
For: The Opinion
Tuesday, October 1
The construction of houses increases 11.8% in November in the United States.
The United States Department of Commerce reported that the construction of new homes in the country increased 11 .8% in November with strong demand that boosted builders’ confidence.
The double-digit percentage increase last month left housing construction at an adjusted annual rate seasonally 1. 68 million units , an 8.3% increase over the rate at this time last year, the federal agency said.
The number of housing construction in October was revised slightly downwards, representing 1.5 million units, which were previously 1. 27 million units.
According to the report, requests for building permits, accounted for an increase of 3.6% in November, or 1. 71 million units, which indicates that they are 0.9% above the November rate of 2020 .
Construction of single-family homes and apartments was strong in November, both seeing low double-digit percentage increases from October.
The Construction activity by region saw the biggest jump in the Northeast, which was up by 27. 5%, followed by the increase in 18. 4% from the south. Construction in the West increased 5.1%, while activity in the Midwest decreased 7.3%.
A Monthly Sentiment Survey Builders’ Ratings released Wednesday by the National Association of Home Builders and Wells Fargo showed sentiment improved for the fourth month in a row, slowly advancing to 84 in December from 83 last month. The index reached a record reading of 90 last November.
The National Association of Home Builders reported that the demand for new homes remains strong , but the limitation for the industry is finding workers, so it is difficult to predict prices. To this, we must add the impact of the shortage of the supply chain that affects the builders.
The lack of available housing for the Sale, new and old, has led to record prices in the real estate market.
According to Yahoo, Robert Dietz, chief economist at the National Association of Home Builders, said that although the start of single-family homes in 2021 is expected to end the year 24% higher than pre-pandemic levels of 2019, “ we expect higher interest rates in 2022 put a brake on housing affordability “.
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