Danushka Nanayakkara-Skillington, assistant vice president of forecasting and analysis for the National Association of Home Builders, said that “declining permits for single-family homes indicates that builders are slowing construction activity as costs increase.”
The issuance of permits increased at an annualized rate of 1.64 million units, 2.6% more than the June revised rate of 1.59 million. Permits for single-family homes fell 1.7% to 1.04 million units, and permits for multi-family homes hit a rate of 532,000 in July.
“Permits for single-family homes fell slightly during the month, but were higher than a year ago and are still higher than the start-up level,” Fratantoni said. “The pace of construction should continue to increase, especially if supply chain constraints start to loosen.”
The number of housing units completed in July grew 5.6% month-over-month to 1.40 million and was 3.8% higher than the July 2020 rate of 1.34 million.