July 2021 New Residential Construction – Census Bureau

July 2021 new residential construction numbers came out last week. We see permits issued for angle family homes have dropped slightly from last month by -1.7% buy are up 5.5% from this time last year. We see developers are starting to get back into the market this summer with permits issued up 11.1% from June and up 6.4% from last year. Developers seeking permits cooled off during the second quarter of this year but after this latest release we anticipate developers coming back to the market. Single family residential construction permitted but not started has increased marginally by 0.7% from June but increased a whopping 55.9% from last year. 

Developers permitted but not started increased by 5.7% from June and 31% from last year. Developers ready to return to the market may be hesitant to start construction as construction has dropped 13.6% from last month and down -16.3% from last July. This is understandable as last year developers were anxious to finish construction due to rising material prices. Single family homes starting construction decreased this month by -4.5% from last month but are up 11.7% from the previous year. Single family home market continues to cool down but is still up considerably from this time last year. 

Single family homes under construction increased 1.5% month over month and 33.3% year over year. We see developments fall -0.7% from last month with no change from last year. However, we do see an increase in the number of completions in both single family homes and developments up 3.6% and 9.5% month over month respectively. However, there is only a marginal change in the rate of completions from this time last year for single family homes. Developers on the other hand have increased completions by 12.1% year over year.