Homebuilders

Lumber prices have wavered, but gypsum, steel and transportation were still on the rise in the past month, according to a National Association of Home Builders analysis.

Residential starts decreased 0.2% last month to a 1.72 million annualized rate after a downwardly revised 1.73 million pace in the prior month, according to government data released Wednesday.

A shortage of workers, sharp wage hikes and global supply chain challenges held the nationwide completion rate to just a 7% increase between 2019-21, according to LendingTree.

Despite lean inventory, efforts by builders to boost production have been hindered by supply-chain challenges, soaring materials costs and difficult hiring conditions.

The creation of single- and multifamily inventory occurred at the fastest pace seen since 2006 in February, but housing market transactions slowed as rates rose.

The builder reported better-than-expected quarterly orders as the record shortage of existing-home listings pushed buyers toward newly built properties.

The record in builder borrowing from banks stands in contrast to a period of pandemic-related disruption, but volume will likely remain below market demand unless President Biden can fulfill promises to reduce supply-chain disruptions.

Sales of new U.S. homes retreated in January after a flurry of purchases at the end of 2021, indicating a jump in mortgage rates may be starting to restrain demand.

The estimated rate of annual sales also dropped in January to its slowest pace since July.

New U.S. home construction fell in January for the first time in four months, indicating pandemic-related labor absences and winter weather tempered recent progress on building activity.