by Risk calculated on 03/16/2023 09:32:00
Today in the CalculatedRisk Real Estate Newsletter: February housing starts: average time from start to completion rose sharply in 2022
Extract:
The census released the annual data on time from start to finishand it showed construction delays in 2022.
In 2022, it took an average of 8.3 months from start to completion for single-family homes, compared to an already high 7.2 months in 2021. For buildings with 2 or more units, it took 17.0 months to complete. buildings with 2 or more units in 2022, compared to 15.4 months in 2021. It will be even longer for multifamily in 2023, since many of these units under construction will be completed this year.
The delays resulting from the real estate bubble are due to the mothballing of many projects for several years. Recent delays were due to pandemic-related supply constraints.
From permitting to start-up, it took 1.3 months in 2022 for single-family homes, compared to 1.3 months in 2021, and it took 2.8 months in 2021 for buildings with 2 or more units, compared to 2 ,2 months.
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The weakness in 2022 was mainly in single-family housing starts. I expect multi-family housing starts to decline in 2023.
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