US Housing Starts Down 1.6% In September Amid Supply, Labor Constraints - Commerce Dept.

WASHINGTON (UrduPoint News / Sputnik - 19th October, 2021) The take-off rate for homebuilding in the United States fell by 1.6% in September, the Commerce Department data revealed on Tuesday, as supply chain and labor issues continued to constrict a market where demand remained high despite record high prices.

"Privately�owned housing starts in September were at a seasonally adjusted annual rate of 1,555,000," the Commerce Department said in a news release. "This is 1.6 percent below the revised August estimate of 1,580,000."

Economists polled by US media had forecast September housing starts at 1.62 million.

The Commerce Department data contrasted with a survey released by the National Association of Home Builders on Monday that showed its Housing Market Index up four points in October as builders remained encouraged by buyer enthusiasm despite record high home prices keeping some off the market.

"Given high prices, the crux of the issue here is getting the supplies and workers to build the homes," economist Adam Button said in a post on ForexLive.

The crisis brought about by the measures implemented to address the coronavirus pandemic has left key building materials in the United States, such as windows and power circuit breaker boxes, in short supply. Labor shortages have also crept up with many people still not returning to full-time work.

However, housing starts were higher compared to a year ago, with last month's rate being 7.4% higher than in September 2020.

Historically, housing starts have fallen from their most recent high of 1.72 million in March that marked a 14-1/2-year high.