The U.S. housing market experienced a decline in August as housing starts fell to a seasonally adjusted annual rate of 1,283,000. This fall marks the second consecutive month of decreasing housing starts, causing analysts to wonder what the long-term effects will be on homebuilders, buyers, and rental markets across the country.
Reasons for this decline are likely attributed to the Covid-19 pandemic. With reduced consumer confidence, mounting layoffs, closing businesses, and disruption to the housing market’s labor force has caused some buyers to pause or cancel their purchase plans. These effects have led to lower homebuilder confidence and fewer starts during the month of August.
Most significantly, the Covid-19 pandemic has had an unprecedented impact on the U.S. housing market. These key points are:
• Housing starts withdrwan to 1,283,000 in August
• Second consecutive month of decline
• Reduced consumer confidence, layoffs, closing businesses, and labor force disruption
• Lower homebuilder confidence and fewer housing starts
• Unprecedented impact on US housing market due to Covid-19
You can read this full article at: https://www.housingwire.com/articles/homebuilders-are-pulling-back-but-permit-activity-suggests-things-will-turn-around-soon/(subscription required)
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