Housing construction in US declines 7% in July
Equipment

Housing construction in US declines 7% in July

The US housing construction dropped sharply by 7% in July as builders struggled to cope with various factors for the decline. It was the lowest pace since April, but 2.55 higher than the previous year.

On Wednesday, the Department of Commerce told the media that the downfall in July had put construction at an adjusted annual rate of 1.53 million units.

The application for building permits rose by 2.6% in July from June to an annual rate of 1.64 million units. Since March, it was the first monthly increase in permit applications.

In July, construction fell by 4.9% for single-family homes, with an annual rate of 1.11 million units. The construction in apartments of five or more declined by 13.6% to an annual rate of 0.412 million units.

The rate of housing construction dropped in every part of the country except in the South, where it rose by 2.1%. The Northeast part faced the biggest decline by 49.3%, the West with a drop of 11.35%, and the Midwest with 6.9%.

A survey of the builders' confidence said that the expectations dropped sharply in August to the lowest in a year. Builders struggled with high prices, supply shortages and increasing prices of the homes. In the National Association of Home Builders or the Wells Fargo survey, the expectations dropped by five points to the reading of 75.

While the housing demand was insane in the past, economists believe that strong demand will continue to drive the industry.

The lead US economist at Oxford Economics, Oren Klachkin, said that the housing demand and sparse inventory would give strong reasons to the builders to maintain the solid level of construction. However, high prices of materials, shortage of workers and limited availability of land will control the construction activity, he added.

On Wednesday, the Mortgage Bankers Association told the media that the application of mortgages dropped by 3.95 to its lowest level in a month, reflecting the fall in refinancing applications as the interest rates of mortgage rose.

Image Source


Also read: New Delhi residential prices drop 0.2% YoY: Knight Frank report

The US housing construction dropped sharply by 7% in July as builders struggled to cope with various factors for the decline. It was the lowest pace since April, but 2.55 higher than the previous year. On Wednesday, the Department of Commerce told the media that the downfall in July had put construction at an adjusted annual rate of 1.53 million units. The application for building permits rose by 2.6% in July from June to an annual rate of 1.64 million units. Since March, it was the first monthly increase in permit applications. In July, construction fell by 4.9% for single-family homes, with an annual rate of 1.11 million units. The construction in apartments of five or more declined by 13.6% to an annual rate of 0.412 million units. The rate of housing construction dropped in every part of the country except in the South, where it rose by 2.1%. The Northeast part faced the biggest decline by 49.3%, the West with a drop of 11.35%, and the Midwest with 6.9%. A survey of the builders' confidence said that the expectations dropped sharply in August to the lowest in a year. Builders struggled with high prices, supply shortages and increasing prices of the homes. In the National Association of Home Builders or the Wells Fargo survey, the expectations dropped by five points to the reading of 75. While the housing demand was insane in the past, economists believe that strong demand will continue to drive the industry. The lead US economist at Oxford Economics, Oren Klachkin, said that the housing demand and sparse inventory would give strong reasons to the builders to maintain the solid level of construction. However, high prices of materials, shortage of workers and limited availability of land will control the construction activity, he added. On Wednesday, the Mortgage Bankers Association told the media that the application of mortgages dropped by 3.95 to its lowest level in a month, reflecting the fall in refinancing applications as the interest rates of mortgage rose. Image Source Also read: New Delhi residential prices drop 0.2% YoY: Knight Frank report

Next Story
Infrastructure Transport

JNPA Becomes First Indian Port to Cross 10 Million TEU Capacity

The Jawaharlal Nehru Port Authority (JNPA), located at Uran in Navi Mumbai, has become the first port in India to achieve over 10 million TEUs (twenty-foot equivalent units) in container handling capacity.With the recent expansion, the port now operates five container terminals with a combined capacity of 10.4 million TEUs, alongside two liquid and two general cargo terminals.Handling more than half of India’s container traffic, JNPA processed 7.05 million TEUs in 2024 and has moved 15.39 million tonnes of containers and 16.64 million tonnes of total cargo in the first two months of FY 2025â..

Next Story
Infrastructure Transport

Nod for Rs. 36.26 billion Expansion of Pune Metro Line 2

The Union Cabinet has approved the Rs.36.26 billion expansion of Pune Metro Line 2, adding 12.75 km of track and 13 new stations to improve east–west connectivity across the city.The project aims to link Pune’s urban core with rapidly growing suburbs, supporting the city’s rising demand for efficient and sustainable transport solutions. This expansion is part of Corridor 2 of the Pune Metro and includes two key routes: Vanaz to Chandani Chowk (Corridor 2A) and Ramwadi to Wagholi/Vitthalwadi (Corridor 2B).It will connect residential, IT, and educational hubs in areas such as Bavdhan, Koth..

Next Story
Infrastructure Transport

Assembly begins for ‘Nayak’ TBM on Thane– Borivali Twin Tunnel Project

The assembly of ‘Nayak’, the first of four Tunnel Boring Machines (TBMs) for the Thane–Borivali Twin Tube Tunnel Project, has commenced at the Thane site. Built by German firm Herrenknecht AG and deployed by Megha Engineering & Infrastructure (MEIL), the TBM marks a key milestone in Mumbai’s ambitious 11.8-km underground road corridor beneath Sanjay Gandhi National Park.The twin tunnels will reduce the Thane–Borivali travel distance by 12 km and decongest Thane Ghodbunder Road. ‘Nayak’, with a 13.2-metre diameter, is designed to bore through challenging geological conditions ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?