Supply-Side Disruptions Push Single-Family Housing Production Down in October
Overall housing starts decreased 0.7% to a seasonally adjusted annual rate of 1.52 million units.
Single-family housing production lagged in October 2021 due to supply chain effects for materials and ongoing access issues for labor and lots. Overall housing starts decreased 0.7% to a seasonally adjusted annual rate of 1.52 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. As a result of continued supply chain challenges, 152,000 single-family units are authorized but have not started construction; this represents an increase of 43.4% from a year ago.
The October reading of 1.52 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 decreased 3.9% to a 1.04 million seasonally adjusted annual rate, though they are up 16.7% year-to-date. The multi-family sector, which includes apartment buildings and condos, increased 7.1% in October to an annualized 481,000 pace.