{"id":8405,"date":"2022-07-21T12:53:55","date_gmt":"2022-07-21T16:53:55","guid":{"rendered":"https:\/\/www.realtyhop.com\/blog\/?p=8405"},"modified":"2022-07-21T12:53:55","modified_gmt":"2022-07-21T16:53:55","slug":"new-residential-construction-june-2022","status":"publish","type":"post","link":"https:\/\/www.realtyhop.com\/blog\/new-residential-construction-june-2022\/","title":{"rendered":"Single-Family Construction Continues to Decline While Multifamily Grows"},"content":{"rendered":"<p><span data-preserver-spaces=\"true\">Despite a national housing shortage, data from the U.S. Census and The Department of Housing and Urban Development (HUD) found that new residential construction\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.census.gov\/construction\/nrc\/pdf\/newresconst.pdf\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">declined in June<\/span><\/a><span data-preserver-spaces=\"true\">.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The seasonally-adjusted number of building permits issued for new construction totaled 1,685,000, an annual increase of 1.4% compared to June 2021. June 2022\u2019s numbers are a monthly 1.4% decline from May, but there is a difference in new permit growth depending on the kind of housing.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The primary driver of shrinking building permits is single-family homes, which declined by 8.0% from May to June and 11.4% annually. However, residential permits for multifamily buildings, defined as properties with five or more units, increased by 13.1% from May to June and 27.8% year-over-year.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">There were 1,365,000 privately\u2010owned housing completions in June, a 4.6% decline from May\u2019s revised estimate of 1,431,000 and a 4.6% increase from the 1,305,000 housing completions in June 2021.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Housing starts also fell 2% month-over-month, from 1,591,000 in May to 1,559,000 in June, and an additional 5.1% from June 2021 levels of 1,664,000. Single-family buildings were also responsible for the annual decline in residential construction starts, declining 15.7% over the year.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Single-family Construction Declines Along with Homebuilder Sentiment<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">The National Association of Homebuilders (NAHB)\/Wells Fargo\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.nahb.org\/news-and-economics\/housing-economics\/indices\/housing-market-index\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Housing Market Index<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0found that homebuilder sentiment in the current single-family housing market fell substantially from June to July. On a monthly basis, homebuilder sentiment dropped 12 points to 55. For comparison\u2019s sake, homebuilder sentiment was 80 in July 2021 and a record-high 90 in November 2020.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">While anything above 50 on the housing market index is considered a positive outlook, the steep monthly drop in confidence is of note. The only time there was a more considerable monthly drop in confidence was April 2020, the first full month of the Covid Pandemic. Robert Dietz, NAHB\u2019s chief economist, explained the main reason behind the decline in homebuilder confidence.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cAffordability is the greatest challenge facing the housing market,\u201d Dietz explained. \u201cSignificant segments of the home buying population are priced out of the market.\u201d<\/span><\/p>\n<p>&gt; <strong>More<\/strong>: <a href=\"https:\/\/www.realtyhop.com\/blog\/june-inflation-highest-since-1981\/\">Annual Inflation Up 9.1% in June, Highest Since 1981<\/a><\/p>\n<p><span data-preserver-spaces=\"true\">Jerry Konter, a Georgia-based homebuilder who serves as NAHB chairman, explained that affordability is also a problem for homebuilders. For example, lumber prices\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/markets.businessinsider.com\/commodities\/lumber-price\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">increased 13.5%<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0from June 13 to July 18<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cProduction bottlenecks, rising home-building costs, and high inflation are causing many builders to halt construction because the cost of land, construction, and financing exceeds the market value of the home,\u201d Konter said.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The United States still has a severe housing shortage that has no end in sight. The only good news for prospective homebuyers is that sales prices are likely to start leveling off soon as overall homebuyer sentiment declines.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite a national housing shortage, data from the U.S. Census and The Department of Housing and Urban Development (HUD) found that new residential construction\u00a0declined in June.\u00a0 The seasonally-adjusted number of building permits issued for new construction totaled 1,685,000, an annual increase of 1.4% compared to June 2021. June 2022\u2019s numbers are a monthly 1.4% decline [&hellip;]<\/p>\n","protected":false},"author":21,"featured_media":8406,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[6],"tags":[],"class_list":["post-8405","post","type-post","status-publish","format-standard","has-post-thumbnail","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Single-Family Construction Continues to Decline While Multifamily Grows - RealtyHop Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.realtyhop.com\/blog\/new-residential-construction-june-2022\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Single-Family Construction Continues to Decline While Multifamily Grows - RealtyHop Blog\" \/>\n<meta property=\"og:description\" content=\"Despite a national housing shortage, data from the U.S. Census and The Department of Housing and Urban Development (HUD) found that new residential construction\u00a0declined in June.\u00a0 The seasonally-adjusted number of building permits issued for new construction totaled 1,685,000, an annual increase of 1.4% compared to June 2021. 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