Single-family home completions are stagnant at early pandemic levels, significantly impacting builders, especially in the Northeast and South. Rising costs, labor shortages, and high interest rates contribute to this slowdown. Meanwhile, apartment building presents a mixed picture—nationally down but experiencing growth in the Midwest and West, with increases of 53% and 18%, respectively.
New single-family homes fell to an annual rate of 840,000, according to the latest U.S. Census Bureau survey results from October 20, marking the lowest rate since May 2020. All regions saw a decline, with the Northeast and South experiencing the steepest drops of 17% and 15%.
The National Association of Home Builders survey highlights that builders are hindered by rising mortgage rates, energy, and material costs. Labor supply issues further complicate the situation, with over a third of builders citing immigration enforcement as a cause of construction delays, according to Bill Owens, chairman of the home builders group.
Buyer interest in new homes has declined due to increasing costs, as noted by NAHB chief economist Robert Dietz, with 43% of builders reducing prices in October, the highest in recent years. “Housing remains squeezed by supply-side constraints and significant affordability challenges,” Dietz stated.
New apartment completions hit an annual rate of 339,000, up from August’s 295,000, the lowest since 2022. However, apartment completions decreased by 64% in the Northeast and 37% in the South.
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