Housing starts were down in April as concern about commodity prices could be influencing builder behavior, according to the Census Bureau. (CB)
- M-O-M: Privately‐owned housing starts in April were at a seasonally adjusted annual rate of 1,569,000. This is 9.5% below the revised March starts.
- Y-O-Y: On an annual basis, housing starts were 67.3% above the April 2020 rate.
In another troubling sign, single‐family housing starts in April were down 13.4% when compared to March, but were up 58.7% when compared to one year ago.
- Regionally, the West had the best month with zero change in April compared to March. The South was down 12.5%, the Northeast fell 13%, and the Midwest plummeted 32.3%
With inventory at all-time lows, this will not be a welcome sight to many. However, there was some good news. Building permits were actually up for the month…
- M-O-M: Building permits in April were at a seasonally adjusted annual rate of 1,760,000, which is 0.3% above the revised March numbers.
- Y-O-Y: On an annual basis, building permits were 60.9% above the April 2020 rate.
With housing demand at all-time highs the fact that builders aren’t building is a pretty clear sign that rising commodity prices are discouraging builders and hindering our ability to meet demand.