Housing starts slip in September
|Summary
- Total housing starts fell 1.6% to a 1,555K-unit pace in September. Despite the decline, new home construction is running at a solid pace. On a year-to-date basis, total starts are up 19.5% compared to the same period last year.
- Hurricane Ida, which ripped through wide swathes of the South and Northeast in early September, likely held back new construction in those areas.
- The monthly decline was owed almost entirely to a 5.0% drop in multifamily starts.
- Single-family starts were essentially unchanged, ending a two-month string of declines.
- Total building permits sunk 7.7% during the month, reversing the strong gain seen the prior month.
- Multifamily permits fell 18.3%, while single-family permits slipped 0.9%.
- Building material and skilled labor shortages continue to hamper new residential development. The number of homes under construction rose to a 1,426K-unit pace, the highest since 1974.
- Despite these headwinds, builder confidence strengthened in October. The NAHB Housing Market Index rose to 80 during the month, the highest level in three months. The single-family sales components, both present and future, rose solidly during the month, as did prospective buyer traffic.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.