Construction of new U.S. homes rose 3.9% to a seasonally adjusted annualized rate of 555,000 in November, the Commerce Department reported Thursday. The November rate matched forecasts from analysts polled by MarketWatch. Housing starts for October were revised higher to a rate of 534,000 from a prior estimate of 519,000. Permits for new construction fell 4% to an annualized rate of 530,000 in November, reaching the lowest level since April of 2009. With persistent weakness in the housing market, homebuilders have been cautious.Not detailed above is the number of permits issued that have not yet been started (i.e. the new starts "pipeline", which is now at the lowest level since December 1961 (i.e. before the New York Mets were a franchise).
While still years away, I think when the market turns and inventory finally falls we may actually see a housing shortage.