Home production drops but remains near post-recession high

​​WASHINGTON – Housing production fell 3.7 percent in April to a seasonally adjusted annual rate of 1.29 million units, according to data from the U.S. Department of Housing and Urban Development and the Commerce Department. 

March’s upwardly revised reading of 1.34 million marked an 11-year high. 

The drop in production is in part due to a decline in the multifamily sector after a strong March. Multifamily starts fell 11.3 percent in April to 393,000 units. Meanwhile, single-family starts remained flat, inching up 0.1 percent to 894,000 units. 

Single-family starts are up 8.3 percent year over year in first quarter 2018, higher than forecasts from the National Association of Home Builders (NAHB). 

“However, builders must manage supply-side hurdles, such as ongoing building material price increases and shortages of land and labor, to meet growing housing demand," said NAHB Chief Economist Robert Dietz. "Lumber prices continue to rise, with recent increases adding more than $7,000 to the price of an average single-family home." 

Overall permits inched down 1.8 percent in April to 1.35 million units after a post-recession high in March. Single-family permits ticked up 0.9 percent to 859,000. Multifamily permits fell 6.3 percent to 493,000 after a 20.4 percent jump in March. 

In the South, combined single- and multifamily housing production increased 6.4 percent in April. Permits rose 12 percent in the region.​

The Real Estate Center has monthly and yearly building permit data by state, MSA, or Texas county. ​