We’re moving out of cities and into the suburbs, switching from renters to homeowners, and there are not enough homes for sale. This is where home builders enter the picture. They’re working at a feverish pace to satisfy demand.
Homebuilders started construction on single-family units at a fast pace last month, reaching an annualized rate of 1.108 million units, up 8.5% from August. At the same time, multi-family housing starts, or apartments, dropped 16.3%.
Overall housing starts increased by 1.9% to 1.415 million units. The building frenzy is creating shortages of available land in desired areas, lumber, and other materials.
It doesn’t look like the pace will slow anytime soon. Housing permits increased 5.2% last month to 1.553 million units.