According to the Department of Housing and Urban Development, in March of 2022, the production of housing has dropped more than 22% from February. This is alarming as the demand for new houses to accommodate more people was an issue previously.
The report also shows that the seasonal adjusted annual construction project rate was 1,216,000 homes, down from estimates of 1,564,000 in February, a 22.3% drop. This is the biggest monthly drop since 1984. This affected the whole of the USA, but the northeast area recorded the greatest drop, falling about 42.5% from February. Moreover, the rate of housing completions fell to 6.1% below in February. Building permits fell to 6.8%.
Although the data shows notable drops on a month-over-month level, both housing starts and building permit rates in March 2020 were still above March 2019 level. It indicates the unfortunate drop in the business. The trend was on the way to becoming the highest in the decade.
The pandemic has also affected the volume of mortgage applications for purchasing a home, home purchasing statements, and reported buyers’ interest. Covid-19 has also slowed the residential housing market during the busiest season of the year.