New home construction fell by 7% in July, because consumers continue to worry about economic recovery coronavirus, According to the latest report Census Bureau on Wednesday.
Construction costs and housing prices also continue to plague the real estate market, resulting in lower than expected 1.6 million units this month. Reuters.
Construction of new housing units reached 1.534 million units in July, well below the 1.65 million units revised in June, while building permits increased by 2.6% to 1.635 million units that month.
Single-family housing fell 4.5% from the previous month to 1.111 million units, a decrease from the 1.163 million units in June. 412,000 buildings with five or more units were constructed.
Realtor.com senior economist George Ratiu said: “Although the demand for new homes is still high, the pace of new construction reflects the weakening of the confidence of home builders in June, as builders are struggling to seize opportunities to increase profitability. Because timber prices have fallen from the recent surge.” Said in an e-mail.
He added: “Builders continue to slow down the pace of completion, worrying about over-commitment to final new house prices amidst fluctuations in land, material and labor costs.”
According to Reuters, material costs are still a problem for builders due to shortages of land and labor.The recent COVID surge has also played a role, as the number of cases of the virus has reached a record number in the United States
This construction The news media said that overall, the industry has been lagging since March, when it reached 1.739 million units, which was the highest level since June 2006.
Photo: Reuters
