January 2021 Residential Construction Report – Census Bureau

Permits are up 22.5% year/year suggesting pent up interest in development, evidenced by a major month/month increase in developers seeking permits, up 28%. Units permitted but not started are up 3.6% year/year for developments. Permits have increased by 28.1% year/year for single family homes while starts are down 12.2% month/month suggesting there is a low supply of builders given the demand. Development starts are up 16.2%, good news that shows developers are ready to get back in the game despite being down 35.1% year/year. An increase of 16.1% year/year in the number of starts still under construction in the single-family home market could be a sign that there are extra delays due to the pandemic, developers see little change from last year, with starts under construction decreasing by 1.2% year/year and no change from December 2020. Overall, completions have increased by 2.4% from this time last year led by a 14.3% increase in single family homes and a 23.9% decrease in developments.