{"id":18715,"date":"2022-05-18T11:35:17","date_gmt":"2022-05-18T16:35:17","guid":{"rendered":"https:\/\/theamericangenius.com\/housing\/?p=18715"},"modified":"2022-05-18T11:35:17","modified_gmt":"2022-05-18T16:35:17","slug":"housing-starts-stagnate-market-conditions-are-rapidly-shifting","status":"publish","type":"post","link":"https:\/\/theamericangenius.com\/housing\/big-data\/housing-starts-stagnate-market-conditions-are-rapidly-shifting\/","title":{"rendered":"Housing starts stagnate, market conditions are rapidly shifting"},"content":{"rendered":"

Housing starts stagnated in April, down 0.2% from the prior month<\/strong>, according to the U.S. Commerce Department. <\/p>\n

The sentiment appears to be that although this marks the second straight month of dips, most are seeing today’s news as a positive<\/strong>, especially as construction of new homes was expected to fall 2.4% in April. <\/p>\n

Further, housing starts are up 14.6% from April of last year<\/strong>, driven primarily by multifamily construction. <\/p>\n

But it’s worth not getting overly excited, given that permits dipped 3.2%<\/strong> in April which is a forward-looking indicator, so expect starts to continue cooling in a time where we quite need the inventory.<\/p>\n

Demand for housing inventory remains high<\/a>, but the National Association of Home Builders reports<\/a> today that confidence in the single-family housing market fell dramatically in May<\/strong>, marking the lowest level in two years. <\/p>\n

Dr. Lawrence Yun, Chief Economist at the National Association of Realtors said in a statement, “The worst of the housing shortage is ending, but market equilibrium between supply and demand is still some ways off<\/strong>.”<\/p>\n

He notes that as mortgage rates increase, builders “are chasing rising rents, with fewer homebuyers and more renters being forced to renew their leases<\/strong>,” noting that even prior to the interest rate increases, rents were rapidly rising and vacancy rates rapidly declining. <\/p>\n

Pointing to another market shift, Dr. Yun notes that “Some degree of a return to the office is also fueling back-to-city living where high rises are concentrated<\/strong>.” <\/p>\n

That’s a problem. <\/p>\n

“Even as home sales look to trend back to pre-pandemic levels after the big surge of the past two years,” concludes Dr. Yun, “inventory will not return to pre-pandemic conditions<\/strong>. That means home prices will get pushed even higher in the upcoming months, albeit modestly, given the supply-demand imbalance.”<\/p>\n","protected":false},"excerpt":{"rendered":"

Housing starts for April stagnated, marking the second consecutive months of declines, and more renters being left out of this shifting market.<\/p>\n","protected":false},"author":2,"featured_media":12050,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"wds_primary_category":0,"footnotes":"","jetpack_post_was_ever_published":false,"_links_to":"","_links_to_target":""},"categories":[91],"tags":[323,378,1234],"class_list":["post-18715","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-big-data","tag-homeownership","tag-housing-starts","tag-real-estate-news"],"jetpack_featured_media_url":"https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2017\/08\/Home_under_construction.jpg","jetpack_sharing_enabled":true,"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/18715","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/comments?post=18715"}],"version-history":[{"count":4,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/18715\/revisions"}],"predecessor-version":[{"id":18719,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/18715\/revisions\/18719"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/media\/12050"}],"wp:attachment":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/media?parent=18715"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/categories?post=18715"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/tags?post=18715"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}