Long construction delays caused by supply chain disruptions are creating a massive influx in the reported number of residential projects underway in 2021, according to the CalculatedRisk Newsletter. With single-family and multifamily starts combined, there are currently 1.486 million units under construction, the most since 1973.
Though new construction rates seem promising in a housing market with limited supply, many projects are facing extended delays, and some have even carried over from the year prior. Between 70,000 and 150,000 single-family homes set to be completed in November are still under construction as a result of supply chain issues impacting builders across the nation, and multifamily projects are lagging even further behind.
Most of the 752,000 single-family homes under construction have already been sold, so this isn’t a huge supply of new single-family homes about to hit the market. But almost all of these buyers live in a different home that they will sell, or they are currently renting. This is normal for new home purchases, but the extra 70,000 and 150,000 single family homes under construction is excess inventory that will need to be absorbed.
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