The delay in October has approved construction at an estimated cost of $ 1.57 million a year, the trade department said Tuesday.
WASHINGTON: U.S. Construction down 9.5% in April and economists say some manufacturers have suspended projects due to rising prices and problems.
The April decline has allowed construction at an estimated cost of $ 1.57 million a year, the trade department said Tuesday. This has dropped from 1.73 million units in March, the best performance since 1.74 million units were built in July 2006 at the peak of older housing growth.
Applications for building permits, seen as an indication of future performance, rose 0.3% in April to 1.76 million a year, saying construction had declined in April.
Economists have noted the April decline and reports of delays by project developers due to rising prices of timber and rice, which hamper access to such goods and equipment.
The price of wood alone adds $ 35,772 to the price of a single-family home, according to the National Builders Association. Among the increase is the border tax imposed by the Trump administration on trade disputes with Canada. There has been a temporary pause in production as the epidemic escalated last year.
Despite high prices, economists expect flats, one of the most economically active diseases, to continue to show strength by 2021.
“Strong demand, investment funds, and homeowners’ expectations support the start of 2021 when higher timber prices and conservation restrictions can follow. The wind is blowing,” said Nancy Vanden Houten, director of economics at Oxford Economics.
He estimates construction will reach 1.6 million this year, up from 1.38 million last year. It is the best annual show since 2006.
Part of this care is reflected in the opinions of beginners. The monthly review of the producers’ team and Wells Fargo’s release on Monday showed a clear improvement in the top 83 readings in May, unchanged in April.
“Over the past few months, the cost of rehabilitated housing has increased by 12 per year and our analysis shows that prices continue to rise,” said Robert Dietz, an economist for producers. “Low-cost products support residential real estate in a market that raises high commodity prices.”
The weakness of April construction showed a 13.4% reduction in single-family housing start-ups, which fell by an annual rate of 1.09 million. Construction of five or more houses increased by 4% to 470,000.
The decline in construction activity in April was due to a 34% decline in the northwest followed by a decline in 11.5% in the south. Yields rose by 9 percent in the West and 6.2% in the northeast.