US Housing Starts Drop Over 20% as Interest and Recession Fears Rise

Forests2Market Blog
February 10, 2023
Category: Finance & Economics
Region: United States

December housing starts saw a dip of over 20% from the same time last year. With interest rates rising and murmurs of a recession abound, the market continues on an unclear path in 2023. According to Forest2Market data, housing starts at the end of 2022 were about 22% lower year-over-year (y-o-y) from 2021. The biggest drop occurred in 1 unit starts with a 25% dip YoY. Starts for 5+ units were also down 16%, while 2-4 units saw an increase from last year. …The major question across the industry right now relates to market performance. Will we see a recovery in 2023 compared to last year? …Many investors in the homebuilding sector are waiting for better economic conditions to make a move. This means a delay of several months to a year or more before jumping back in. Delays like this will inevitably lead to depressed demand for building materials.

Read More