US: Housing starts improve modestly in October - Wells Fargo
|Data released today showed that Housing Starts rose 1.5% in October in the US, recovering from a slide of %% in September. Building permits dropped 0.6%. Analysts at Wells Fargo point out that permits are running ahead of starts but all the overshoot is in multi-family units.
Key Quotes:
“Housing starts rose modestly in October, with overall starts rising 1.5%. All of the gain, however, came from multifamily units, which jumped 10.3%. Most of that gain was in projects with five or more units, which rose 6.2% and are primarily apartment projects. Starts of single-family homes fell 1.8% in October, marking their second consecutive drop.”
“Permits for single-family homes fell 0.6% in October and are running below starts, indicating that single-family starts are likely to continue to lose momentum in coming months.”
“Permits for new single-family homes through the first ten months of the year are running 5.7% ahead of their year-ago pace but are running 3.4% below starts, again suggesting the single-family market will continue to lose momentum.”
“The weakness in the single-family market is being offset somewhat by continued strength in multi-family units.”
“The multi-family market is the polar opposite of the single-family home market. Permits for projects with five or more units through October are running roughly even with their year-ago pace but are running 11.7% above starts through the first ten months of 2018. With demand remaining strong, we could see a bit more strength in apartment starts in coming months, even as single-family starts continue to drop.”
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.