Chart of the Day: Permitted House Explosion

Today’s Chart of the Day is from re:venture  and shows the history of home builder months of supply by stage of construction.

Though there are ebbs and flows, in the past the ratio between the stages is relatively stable. However, since 2021, the months' supply of Permitted Houses (Not Started), shown as a yellow line, have exploded upward from three months to a record high of 19 months. 

My colleague Craig DeYoung, Area President for Southwest Florida, observed, “It’s a bit concerning that the building industry is outpacing demand with what is already under construction; however, builders appear to be holding off on starting construction on permitted houses until things settle.”