New home completions are stuck at 2020 levels

Single-family home completions remain stuck at early pandemic levels as of September as costs, labor supply shortages and high interest take a toll on home builders, especially in the Northeast and South. 

Apartment building was a more mixed picture, down nationally but up sharply in the Midwest (53%) and West (18%). 

New single–family homes dropped to an annual rate of 840,000, the lowest since May 2020, according to new U.S. Census Bureau survey results released Oct. 20. 

Aging workforce, immigration crackdown are depleting skilled workers

Single-family home completions fell in every region, especially in the Northeast (-17%) and South (-15%).  

Builders of single-family homes are stymied by rising mortgage rates, costs for energy and materials, and worsening labor supply, according to an October survey by the National Association of Home Builders. 

More than a third of home builders said immigration enforcement activity caused construction delays and discouraged legal workers from reporting for work, said  Bill Owens, chairman of the home builders group, in a statement. 

Buyer interest in new homes has fallen as costs rise, NAHB chief economist Robert Dietz said, and 43% of builders cut prices in October, the largest share in recent years. 

“Housing remains squeezed by supply-side constraints and significant affordability challenges,” Dietz said in a statement. 

New apartments came in at an annual rate of 339,000, an increase from August’s 295,000, which was the lowest since 2022. Apartment completions were down 64% in the Northeast and 37% in the South. 

Stateline reporter Tim Henderson can be reached at [email protected].