Posted on 02/17/2022 10:45:44 AM PST by Red Badger
New construction of single-family homes fell sharply and unexpectedly in January as homebuilders struggled with huge costs increases, data from the Department of Commerce showed Thursday.
Single-family home starts dropped 5.6 percent in January compared with the prior month, exasperating a shortage of houses that has sent home prices soaring. U.S. homebuilders started new single-family projects at a seasonally adjusted, annualized rate of 1.116 million units, 2.4 percent below the rate of construction a year ago.
Multifamily construction declined as well, falling to an annual rate of 510,000, 2.1 percent below December’s rate. Construction of apartment or condo buildings with five units or more is up 8.7 percent from a year ago when urban construction was still struggling under the weight of the pandemic.
Homebuilders have been hit hard by inflation. Construction machinery and equipment prices are up 11.4 percent compared with a year ago, according to the Department of Labor’s Producer Price Index. Softwood lumber prices are up 20.1 percent over the past 12 months. The index that tracks nails is up a striking 44 percent. Plumbing fixtures are up 7.4 percent. Bolts, nuts, screws, and rivets are up 16.5 percent. Air conditioning is up 18.7 percent.
(Excerpt) Read more at breitbart.com ...
‘unexpectedly’
UNEXPECTEDLY!!!
Drink.
It’s winter
“UNEXPECTEDLY!!!
“Drink.””
In vast quantities.
All bad news is ‘unexpected’.
Cue the appropriate meme. Too bad I don’t know how to post them, but I can quote.
You keep using that word. I do not think that it means what you think it means.
Two opposing forces... this will curtail new supply in a supply limited markets and drive the prices of existing houses higher, vs rising mortgage rates driving prices lower.
BWAHAHAHAHAhahahahahahaha...
Illiterate morons.
But he couldn't even manage that. He has no self-awareness of how stupid he really is.
Trump, for all this faults, understood the middle class and clearing up the supply chain and resolving issues like this. I think he was the one of the only politicians that connected with middle class. Now that enemy democrats have figured out how to game the system, they are only beholden to the money masters that will fund the vote fraud and ensure their power.
This will hurt supply. That supports prices. Housing is in shortage. With mortgages starting to rise, that means difficulties. Kind of a stagflation thing.
I’m looking for rural land, which I think has a very good future.
People are throwing absurd money around because there are no houses to be had. Supply and demand in action.
Unfortunately a generation of young people looking to get started in a home are screwed. They can't make gigantic cash offers for a home. And thanks to Biden it looks like there won't be any new supply of starter homes anytime soon.
Comparing this year to last year is a non-starter.
Last year, for me at least, was balls-to-the-wall for 12 straight months, when there used to be a lull in Jan-Feb. Business was up 83% over the average of the 3 preceding years.
Right now, it’s still brisk, but not as busy as the same time last year.
Fewer new homes means increased demand (and prices) for existing homes.
The Media used to say Obama was the smartest man in the room. Well, just look who's in the room with him.................
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