(PatriotWise.com)- Homebuilding in the United States fell in September, and nobody was predicting it.
Permits also dropped to a one-year low, caused by shortages of labor and raw materials – an indication that the Democrats’ push for people to stay at home and collect benefits has seriously damaged the national economy and slowed down economic recovery.
The news comes from a report by the Department of Commerce, which was released on Tuesday It shows how the gap between the number of houses completed and those that are still being constructed is bigger than it ever has been. Even as demand stays high, the lack of workers as well as problem supply chains means that developers simply cannot keep up with that demand.
It’s dangerous, too, as it could cause a dramatic increase in housing costs as people compete to find new homes that are completed.
Rubeela Farooqi, the chief economist at the High Frequency Economics organization in New York, said that “momentum in demands still appears to be positive, but supply is struggling to catch up given higher input costs and shortages that remain headwinds for builders.”
The number of housing construction projects starting dropped by 1.6% to a seasonally adjusted annual rate of just 1.555 million units, which is the lowest we’ve seen since April of this year. Data from August of this year was also revised down, dropping the number to 1.580 million units. In comparison, that number was 1.615 million units the same time last year.
According to a survey from the National Association of Home Builders, which was published on Monday, there is some confidence remaining among those who build single-family homes, but builders are continuing to struggle with supply chain disruptions as well as a shortage in labor.
It means that houses already under construction are very likely to experience delayed completion times.