According to a July report from the U.S. Housing and Urban Development and Commerce Department, total housing production is at its highest rate since February, jumping 22.6% to a seasonally adjusted annual rate of 1.50 million units. Included are single-family starts which increased 8.2% to a 940,000 seasonally adjusted rate and the multifamily sector, jumping 58.4% to a 556,000 pace.

 

Although recent lumber prices are adding roughly $14,000 to the price of new single-family homes, builder confidence is expected to remain strong. NAHB chief economist Robert Dietz states lumber prices are now up more than 110% since mid-April but due to historically low interest rates, a focus on the importance of housing and a rising demand in suburbs and exurbs, the market shows growth and will lead the economic recovery.

Overall permits also increased in July by 18.8% to a 1.50-million-unit annualized rate. Single-family permits jumped 17.0% to a 983,000-unit rate with multifamily permits increasing 22.5% to a 512,000 pace.