New home construction rose less than expected in May. It’s the latest housing data after Monday’s surge in homebuilder confidence was reported.
The Commerce Department said today housing starts rose 6.8 percent to a seasonally adjusted annual rate of 914,000 units versus expectations of 950,000.
Reuters reports this miss likely reflects labor and material constraints. CNBC Real Estate reporter Diana Olick adds to the list a lack of land and a supply chain for homebuilders that wasn't ready for this pick-up in demand.
But Olick also suggests the holdup in construction may be intentional.
“Believe it or not we’re hearing from some builders - self-admittedly - that they are slowing production of new homes because they want to take advantage of these rising home prices,” Olick tells The Daily Ticker in the accompanying interview. “In the last new home sales reportRead More »from Are Homebuilders Holding Off Construction to Game Rising Prices?