Steel Markets
February 18, 2021
Housing Starts Cool in January as Lumber Prices Soar
Written by Sandy Williams
Housing starts slowed in January as contractors struggle to build affordable homes amidst rising construction costs. Housing starts slid 6.0% in January to a seasonally adjusted annual rate of 1.58 million, according to the latest report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
“The weakness in housing starts in January is consistent with our recent builder surveys,” said National Association of Home Builders Chief Economist Robert Dietz. “Builders report concerns over increasing lumber and other construction costs and delays in obtaining building materials. Rising interest rates will also erode housing affordability in 2021, as existing home inventories remain low.”
