Single-Family Housing Construction Flattens in November

Housing starts rose 1.2 percent in November to a seasonally adjusted annual rate of 1,547,000 and were 12.8 percent higher than November 2019. Single-family housing starts flattened in November increasing just 0.4 percent to a rate of 1,186,000. Starts for buildings of five units or more rose 8.0 percent. On a year-to-date basis, single-family construction is up 10.1 percent compared to last year.

“The single-family construction sector appears to be leveling off at strong levels, with permits roughly at a flat level from September to October,” said NAHB Chief Economist Robert Dietz. “Nonetheless, the growth for single-family construction was a true bright spot amid economic challenges in 2020, with single-family starts up 10 percent year-to-date and posting the best year since the Great Recession. However, the backlog continues to grow, with the number of single-family homes permitted but not started construction up 16.3 percent from November 2019 to November 2020 as material delays and higher costs hold back building.”