A record number of residential units under construction

by calculated risks 11/17/2022 09:22:00 AM

Today, in the Risky Real Estate newsletter: October Housing Beginnings: Record Number of Residential Units Under Construction

Excerpts:

The fourth graph shows housing starts under construction, seasonally adjusted (SA).

Red are individual family units. There are currently 794,000 single family units (red) under construction (SA). This is down from the previous six months, and 36,000 down from the recent peak in April and May. Single-family units under construction have peaked since single-family units are now declining. Perhaps the reason there are so many homes under construction is due to supply constraints.

Blue is more than 2 units. There are currently 928,000 multi-family housing units under construction. This is the highest level since December 1973! For multiple families, construction delays are also likely to be a factor. The completion of these units should help with rental pressure.

Combined, there are 1.722 million units under construction. This is the record number of units ever under construction.

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