Number of New Home Starts Drops Five Percent in 2021
PRESS RELEASE
For Immediate Release
Alicia Naleid, Director of Communications
(608) 242-5151 ext. 13
Number of New Home Starts Drops Five Percent in 2021
Homebuilding in second half of 2021 slows significantly
February 7, 2022 – The latest new home construction numbers decreased in quarter four 2021, leaving the year behind 2020 starts.
The data, submitted by all municipalities across the state, shows 2,146 permits were pulled between October 1 and December 31 of this year, 16 percent less than the 2,567 permits pulled in quarter three. The numbers also show the second half of 2021 is down 32 percent compared to the first half of 2021, with 4,703 and 7,008 permits pulled, respectively. A 2021 year-end total of 11,711 permits is nearly five percent less than the 12,291 permits pulled in 2020.
“These numbers are proving what our members and homeowners across the state are experiencing,” said Wisconsin Builders Association (WBA) Executive Director Brad Boycks. “Homebuilding has been strong over the last two years, but the material prices and supply chain delays have started to have a significant impact on the number of homes the industry can build.”
At its peak, the cost of lumber added $36,000 to the cost of an average-sized new home, while prices of steel mill products, resins, windows, door frames, copper pipe and tube, aluminum, and other necessary building materials have all increased. In 2020 and 2021, the real price of softwood lumber over those 24 months was 37% higher than the historical average.
“We are encouraged that the Biden Administration has moved to reduce duties on Canadian softwood lumber from 17.99 percent to 11.64 percent,” said WBA President Cory Sillars. “More still needs to be done to make products affordable and available so we can get back on track with building. We are hopeful current national legislation will help provide needed relief to acquire building materials and trade goods at a faster rate.”
About the Wisconsin Builders Association
The Wisconsin Builders Association is a professional trade association comprised of 21 local associations dedicated to helping members build communities around the state. We advocate the interests of 4,000 home building industry members to keep housing affordable and accessible for Wisconsin families, Protecting the American Dream for over 70 years.
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