While demand for new homes continued to grow, the physical construction of new homes in the United States declined in October.
According to the last US Census Bureau report, while the number of new permits issued allowing future construction rose 4% in October from the previous month, the start of physical work on new construction fell 0.7%.
The coronavirus pandemic has begun a boom in the housing market as people sought to change their living conditions. The market remains hot, creating obstacles for many potential buyers.
Construction continues to struggle to keep up with housing demand, facing labor and material shortages. Rising demand caused prices for materials, such as wood and steel, to soar earlier this year, and the effects are still being felt even as the numbers begin to fall, complicated by supply chain crisis.
Housing problems exist, not only with new construction, but also with established homes.
A report from Redfin found that over a four-week period, ending October 17, one-third of homes in more than 400 metropolitan areas had been contracted within a week of listing.
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