Last month, due to shortage in lumber as well as other supply chain issues and drops in single-family homes increased costs and slowed construction.
According to Yahoo! Finance, for October 2021, total residential starts in the US remained essentially flat from the previous month, at 1.520 million units. Continuing to improve as throughout this year, permits for future homebuilding in October were up by +4% compared to the previous month, when it was 1.586 million, to a rate of 1.650 million units. This is a +3.4% increase over October 2020, when it was 1.041 million units.
Shrewd investors know that softwood lumber prices are a good leading indicator for US housing activity.
There were about 333,000 job openings in the construction industry as of the end of September, and according to the NAHB, availability of land for building is at multi-decade lows. As well, construction costs jumped a record +12.3% year-on-year in October, according to the latest producer price data.