Housing market rallies as materials shortages intensify

Housing activity grew significantly across almost all major indicators in April, with single-family housing authorizations up 18.39%, year over year.

In existing housing activity, drastic upswings in the month of April are relative to the drop in activity seen this time last year, when the market felt the first shocking impacts of COVID-19. The pandemic caused maintenance and remodel volumes to plunge 29.09% and 33.83% year over year, respectively. One year later, the strong investment seen in the existing housing stock over the past several months continues as homes undergo repairs following winter storms, and confidence grows among potential home sellers.

New and Existing Housing Supply Activity, April 2021, Year Over Year

  • Single-family housing authorizations increased 18.39%.
  • Existing housing maintenance volume grew 71.60%.
  • Existing housing remodel volume increased 77.69%.

“New and existing housing activities have both increased for nine-consecutive months, which is good news for the overall health of the housing stock. However, rampant building has helped create a global building materials shortage which now threatens the pace of construction and efforts to increase the housing supply. Fortunately, home seller sentiment continues to rise as COVID-19 cases decline and pandemic-related restrictions are lifted. In April, homes underwent repairs and improvements at a rapid clip as homeowners potentially warmed up to reentering the market in the coming months.”

— Jonathan Kanarek, Managing Director, BuildFax

Download the report for an in-depth view of U.S. housing activity in April.