Single-family starts in December 2020 increased 12% to a 1.34 million seasonally adjusted annual rate, while the multi-family sector, which includes apartment buildings and condos, decreased 13.6%.
While housing starts ended the year on a strong note, rising lumber prices and increasing regulatory cost concerns could affect future production. Led by a solid, double-digit gain in single-family starts, overall housing starts increased 5.8% to a seasonally adjusted annual rate of 1.67 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
The December reading of 1.67 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts increased 12% to a 1.34 million seasonally adjusted annual rate. The multi-family sector, which includes apartment buildings and condos, decreased 13.6% to a 331,000 pace.