Residential construction had busiest year since 2006: MBA

Housing starts jumped nearly 6% in December

National /
Jan.January 21, 2021 03:00 PM
Overall, the number of housing units that started construction last year was up 7 percent from 2019. (iStock)

Overall, the number of housing units that started construction last year was up 7 percent from 2019. (iStock)

Residential construction continued to surge as 2020 came to an end, finishing off homebuilding’s busiest year since the housing bubble burst.

Housing starts in December increased for the fourth month in a row to an annual rate of 1.67 million units, seasonally adjusted, according to the Census Bureau’s monthly report on residential construction. That’s a 5.8 percent increase from November’s revised rate and up 5.2 percent year-over-year.

Overall, the number of housing units that started construction last year was up 7 percent from 2019.

Joel Kan, head of industry forecasting for the Mortgage Bankers Association, called it “the strongest for residential construction since 2006.”

Residential projects have dominated construction spending as demand and housing prices have continued to rise with inventory shrinking and interest rates remaining low. But there are some headwinds: Homebuilder sentiment has dipped over the past two months and mortgage rates have crept up.

The annual rate of building permits in December was 1.7 million, seasonally adjusted — about 4.5 percent higher than November’s rate and up more than 17 percent year-over-year. Kan pointed to the continued uptick in permits for single-family homes as an indication of new supply to come.

The rate of housing completions also increased to 1.4 million units, seasonally adjusted. That was up about 16 percent from November’s revised rate and up 8 percent year-over-year.






    Related Articles

    arrow_forward_ios
    Rendering of Plantation apartments with PGIM's Eric Adler and Stiles Corp's Ken Stiles (Stiles)
    Stiles, PGIM buy Plantation multifamily dev site from synagogue, score $64M financing
    Stiles, PGIM buy Plantation multifamily dev site from synagogue, score $64M financing
    Frank Mendez with Patricio Cordero (inset) and the property (Linkedin, Google Maps)
    Pinecrest homeowners fight lien from celebrity builder they allege was running a kickback scheme
    Pinecrest homeowners fight lien from celebrity builder they allege was running a kickback scheme
    (iStock)
    South Florida construction starts fall in January
    South Florida construction starts fall in January
    Christopher Mills and Brad Meltzer (Plaza Construction)
    Plaza Construction promotes two executives, relaunches homes division
    Plaza Construction promotes two executives, relaunches homes division
    (iStock)
    South Florida construction starts rise in December, end the year down 25%
    South Florida construction starts rise in December, end the year down 25%
    From left: Jim Cohen, Nancy Corey, Nathan Zeder, Alicia Cervera Lamadrid, Phil Gutman and Mike Pappas (iStock)
    South Florida’s pandemic-fueled residential market poised for bull run in 2021
    South Florida’s pandemic-fueled residential market poised for bull run in 2021
    Kathleen DuRoss Ford and 300 North Lake Way (Getty, Google Maps)
    Kate Ford’s Palm Beach estate sells for $55M
    Kate Ford’s Palm Beach estate sells for $55M
    (iStock)
    South Florida construction starts fall in November
    South Florida construction starts fall in November
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...