New home construction is reaching levels not seen in nearly 16 years, according to a report just issued from the Census Bureau. That report shows that overall housing starts were up by 0.3% last month at a seasonally adjusted rate over February. But more importantly, the rate had increased by 3.9% compared with March of 2021. That rate is the highest seen in the industry since 2006. While construction in the single-family market was off just under 2% for the month and a substantial 4.4% over last March, multi-family projects of five or more units saw a vibrant increase of 7.5% over February of this year. The increase in multi-family projects over March of 2021 entered the stratosphere with a 28% jump. A sign of continued growth was seen in the increase in multi-family permits, showing an 11% jump since February, and year over year growth of 34%. Indicating a much more challenging picture, permits for single-family projects were down by 4.8% since February, and 3.9% when compared with March of 2021. Looking at the market for new home construction, Jerry Konter, chairman of the National Association of Home Builders, remarked that “higher mortgage interest rates and rising construction costs are pricing buyers out of the market, and these higher costs are particularly hurting entry-level and first-time buyers.” In a statement, Konter continued: “Policymakers must address building supply chain disruptions to help builders bring down construction costs and increase production to meet market demand.” By Garry Boulard
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