Is the higher rate of property construction sufficient to meet the current demand?

Is the higher rate of property construction sufficient to meet the current demand?
The rate of property construction this year in October was 8% more than last year’s figures-still, at this rate the demand for housing can’t be met. On a yearly basis the level of production of housing starts in September was 1.42 million-unit, but for meeting the housing demand in the market, the level of housing starts need be of 1.55 million-unit. If you want to know about the number of housing starts, permits act as the best indicators. Lack of enough construction workers and costly lumber creates a hurdle for new construction work.

If we take the figures of single family property construction since June 2007, this year’s September showed the highest ever recorded figure (found in a study by National Association of Home Builders). Amid the covid-19 pandemic, starts in multifamily home (apartments & condos) construction suffered a fall of 16.3% in September this year.

The builder confidence is very high and strong buyer traffic makes housing industry a bright spot in otherwise pandemic hit economy. This fact is supported by the housing starts report which is clearly positive. In Midwest, the housing starts of both single and multifamily houses was recorded highest from January to September (11% growth), the second highest was recorded in South (5.7% growth) followed by West (4.5% growth). According to Commerce Department’s data the rate of homebuilding in Northeast was down by 1.4%. <h4></h4> Over the next months, the rate of construction of new homes will stay raised, but the limited supply of construction material in spite of high demand slows down some of the construction work. Compared to last year’s figures, the authorized but not started single family homes are higher by 22.4% this year.