Housing starts and permits rose moderately in October

Key Takeaways:

– Housing starts in October rose to a seasonally adjusted annual rate of 1,372,000, the highest in three months.
– Permits for future construction also increased in October.
– Builder confidence has declined for the fourth consecutive month due to elevated mortgage rates and limited financing possibilities.
– Single-family housing starts in October surpassed last year’s level.
– The rate for housing starts in buildings with five units or more slightly dropped in October.
– Single-family permits increased, while multifamily permits also saw an uptick.
– Completed homes fell in October but were still above the October 2022 level.
– The Midwest and the West had the strongest homebuilding activity in October, while the Northeast faced challenges.
– There may be some positive developments for homebuilders in the future, including a good inflation report and declining mortgage rates.

HousingWire:

Housing starts surprised in October. They rose to a seasonally adjusted annual rate of 1,372,000, the highest in three months, according to the U.S. Department of Housing and Urban Development and U.S. Census Bureau data. It’s a 1.9% gain from the revised September estimate of 1,346,000 and 4.2% below the October 2022 rate of 1,432,000.

Permits for future construction also jumped 1.1% from September. Indeed, privately‐owned housing units authorized by building permits in October were at a seasonally adjusted annual rate of 1,487,000, up from 1,471,000 in September.

Builder confidence declined again on Thursday for the fourth consecutive month as elevated mortgage rates have dampened homebuyer demand. Higher interest rates have also hindered financing possibilities for new housing projects. 

Overall, single‐family housing starts in October came in at a rate of 970,000, which is 0.2% above the revised September figure of 968,000. It also surpassed last year’s level, according to Bright MLS Chief Economist Lisa Sturtevant. Meanwhile, the housing starts rate for units in buildings with five units or more, dropped slightly in October to 382,000 from 383,000 in September. 

Single-family permits increased (+0.5%) to 968,000 in October, up from 963,000 in September.  Multifamily permits came in at 469,000, an encouraging uptick from September’s 459,000. Completed homes fell to seasonally adjusted annual rate 1,410,000, a 4.6% drop from the prior month but 4.6% above the October 2022 level. 

The Midwest and the West posted the strongest homebuilding activity in October. The Northeast did not perform as well as weather, supply chain issues, and difficulties getting permits hampered construction.

However, “there may be some bright spots for homebuilders in the months to come,” Sturtevant said.

“A good inflation report and steadily declining mortgage rates provide some relief to the market,” she said. “At the same time, there are still many individuals and families who want to buy a home but who are waiting for more supply.”

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Property Chomp’s Take:

is an important element in web development and design. It is a tag used in HTML to define a division or section within a webpage. It allows developers to organize and structure content, making it easier to manage and style.

In the recent housing market data, housing starts surprised in October, showing a rise to a seasonally adjusted annual rate of 1,372,000. This is the highest in three months, according to the U.S. Department of Housing and Urban Development and U.S. Census Bureau data. While this is a positive sign, it is still 4.2% below the October 2022 rate.

Permits for future construction also saw a 1.1% increase from September, indicating potential growth in the housing market. However, builder confidence declined for the fourth consecutive month, as elevated mortgage rates have dampened homebuyer demand and hindered financing possibilities for new housing projects.

In terms of specific housing types, single-family housing starts in October came in at a rate of 970,000, surpassing last year’s level. On the other hand, the housing starts rate for units in buildings with five units or more slightly dropped in October.

While there are some challenges in the housing market, there may be positive developments in the coming months. Factors such as a good inflation report and declining mortgage rates provide some relief to the market. Additionally, there is still a demand for more housing supply, indicating potential opportunities for homebuilders.

In conclusion, the

tag plays a crucial role in web development and design, allowing developers to organize and structure content effectively. In the housing market, October showed some positive signs with increased housing starts and permits for future construction. Despite challenges, there are potential bright spots for homebuilders in the coming months, thanks to factors like declining mortgage rates and the demand for more housing supply.

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