Housing launches grew 3.9% last month
US home construction boomed in August despite ongoing material shortages.
Housing starts rose 3.9% last month at a seasonally adjusted annual rate of 1.615 million, the Commerce Department said Tuesday. Analysts polled by Refinitiv were expecting 1.555 million to start.
Permits for future construction increased 6% month over month to 1.728 million, ahead of an estimated 1.6 million.
Homebuilder confidence lasts longer as material costs ease
Supply chain disruptions due to the pandemic have left builders grappling with material shortages and high costs as the US economy reopens.
But after the National Association of Home Builders/Wells Fargo Housing Market Index released on Monday that homebuilding could pick up further in September, builder sentiment held up to a point in September as prices of some materials fell and demand strengthened. Remained.
Although the rise in timber prices began to ease in May, many builders were not relieved until recently, as the higher-priced material had not yet worked its way through the economy.
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A common material used in home construction, the cost of strand board went up by more than 500% this year. The increased cost added $36,000 to the cost of building a new home.