US Housing Starts Fall for a Third Month, Building Permits Drop

By Reade Pickert
Bloomberg Investing
December 20, 2022
Category: Finance & Economics
Region: United States

New US home construction continued to decline in November and permits plunged as high borrowing costs paired with widespread inflation eroded housing affordability and demand. Residential starts decreased 0.5% last month to a 1.43 million annualized rate. Single-family homebuilding dropped to an annualized 828,000 rate, the lowest since May 2020. Applications to build, a proxy for future construction, decreased 11.2% to an annualized 1.34 million units. Permits for construction of one-family homes fell 7.1% to the weakest pace since 2020. …Multifamily starts increased, while permits for new construction declined to a more than one-year low. Groundbreakings on single-family homes dropped in the South and Midwest, while permits declined in three of four regions. Meanwhile, the number of homes completed jumped nearly 11% to an annualized 1.49 million, the highest since August 2007 and a sign builders are making greater progress on backlogs amid a demand pullback.

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