**1.572 million homes were started in May (SAAR), up 3.6% from April and 50.3% from May 2020, according to the U.S. Census Bureau.

**Housing permits fell 3% from April, to 1.681 million (SAAR) — the lowest figure since October 2020.

**Housing completions fell 4.1% from April but were up 16.1% year-over-year, to 1.368 million (SAAR).

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Demand for housing remains in overdrive but supply side constraints have left otherwise eager homebuilders struggling to find a higher gear. Builders are having no problem selling through their inventory, and on the surface enduring homebuyer demand has them feeling generally good about the path forward for the new home market. And although builder confidence has come down from the historic highs hit in late 2020, it remains elevated as shoppers continue to snap up newly constructed homes at a record pace. But the past two months have made it clear that uncertainties regarding the price and availability of lumber and other key building materials have impacted builders’ ability to start new projects and forced them to alter their approach. Many builders are having to cap sales volume as a result of the supply shortage and price uncertainty, lamenting the fact that they could sell more if not for the constraints. Others are delaying listing homes for sale until later in the building process, adding price escalation clauses to their contracts or even holding off on projects altogether, all in an effort to account for input prices that have soared in the last year. Thankfully, some relief may be on the way. While it remains elevated compared to last year, the price of lumber has come down significantly in recent weeks, offering some builders hope that the worst of the price pressures may be passing. And ultimately, it isn’t that builders aren’t finding ways to get projects going — year-to-date, housing starts are up 27.9% from the same period in 2019 (pre-pandemic) — they’re just wishing they could do even more.