Continuing a strong upward trend seen through the end of 2020, new construction permits soared in the first month of 2021 — even as starts and completions lagged slightly.

Privately owned housing units authorized by building permits rose by 22.5 percent year over year and 10.4 percent month over month in January, according to data released Thursday by the U.S. Census Bureau and U.S. Department of Housing and Urban Development.

Housing starts fell 2.3 percent year over year and 6 percent month over month while housing completions rose 2.4 percent year over year but fell 2.3 percent from December.

U.S. Census

While all three categories saw spikes in December, the January numbers are not as strong in large part, according to experts, due to the difficult logistics of continuing to build enough to address an inventory shortage stretching back years at the start of 2021. Construction of new homes is one of the most practical, if slow-moving and expensive, ways to solve the inventory problems.

“The number of January housing starts is like a typical starter home: OK, but not great,”  Holden Lewis, Home, and Mortgage Expert at NerdWallet, said in a prepared statement. “There aren’t enough houses to meet demand. Every time a builder starts constructing a home, it’s helping to alleviate the housing shortage, but we need years of robust homebuilding to return to a balanced market between sellers and buyers. Let’s hope that home construction will increase as the pandemic eases and the economy recovers.”

Email Veronika Bondarenko

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×