Saturday, December 4

New home construction in the US fell in September

The construction of new homes in USA (USA) contracted by 1.6% in September, affected by the shortage of materials derived from the problems in the supply chains and labor.

The report of Department of Commerce It also reflected that applications for construction permits, a barometer of future activity, fell 7.7% from August to 1.59 million, but remain unchanged since September 2020.

In fact, new home construction fell at an adjusted annual rate of 1.555 million units last month, its lowest level since April.

Low interest rates and the desire for more space are attracting buyers, but rising material costs and shortages have driven prices and inflation up.

Economists and developers say demand remains strong, despite the fact that a new home costs about 20% more than a year ago.

Apartment construction also declined in 5.1% from August to September, while the construction of single-family houses did not have variations with respect to the 1.1 million units in the previous month.

Among the scarcest materials are windows and electricity distribution boxes, while the cost of wood has started to rise after falling from all-time records in May.

Economists predicted an increase in construction to 1,620 units.

Voice of america