All articles tagged with #building permits
Housing data, especially building permits, is a critical indicator for predicting recessions, and recent declines to pandemic-era lows suggest increased recession risk, with the odds now at 48%. The housing market's weakness, driven by high inventories and rising mortgage rates, is raising concerns among economists and the Federal Reserve about potential economic downturns.
Six months after Los Angeles experienced its worst firestorm, signs of recovery are emerging with debris removal and rebuilding efforts underway, but the community continues to grapple with profound loss, ongoing investigations into the fires' causes, and legal battles involving utility companies and insurers.
The US housing market is experiencing a significant downturn, with construction starts and permits at five-year lows, declining builder sentiment, and increased costs due to tariffs and labor shortages, raising concerns about broader economic impacts.
Housing starts plunged 14.7 percent in March, with multi-family construction notably weak over the past year, experiencing a 42.2 percent decline since January 2023. Single-family housing starts, on the other hand, increased by 24.2 percent during the same period. Building permits for privately-owned housing units also decreased by 4.3 percent in March, while single-family authorizations fell by 5.7 percent. Despite significant fluctuations, the data suggests a stagnant housing market, with expectations of continued weakness, particularly in the single-family sector.
Single-family housing starts in the US surged 11.6% in February, reaching the highest level in nearly two years, driven by mild temperatures and a shortage of existing homes. Builders are offering incentives and reducing home sizes to manage higher material costs. With mortgage rates expected to trend lower, homebuilding could contribute to economic growth. Single-family building permits also rose to a 1-1/2-year high, and completion rates increased, potentially helping to bridge the housing inventory gap.
The housing market saw a surge in new-home construction in February, with privately owned housing completions and housing starts both experiencing significant increases. The rebound is attributed to warming weather and improved supply chains, signaling a recovery from pandemic-related volatility. The construction of single-family properties is expected to alleviate pressure on the market, and building permits for new-home construction also rose, indicating a positive outlook for the year. As warmer weather approaches and interest rates are expected to decrease, activity in the housing market is anticipated to pick up even more during the prime spring home-buying season.
Housing starts plunged 14.8 percent in January, despite positive revisions, marking a bad start to 2024. Building permits for privately-owned housing units also decreased by 1.5 percent from December, while existing home sales fell to their lowest level since 2010. Additionally, retail sales took an unexpected 0.8 percent dive in January, indicating a challenging start to the year for the economy.
Single-family housing starts in the US reached a 1-1/2-year high in November, rising 18.0% and indicating potential momentum in the housing market due to declining mortgage rates and incentives from builders. Permits for future construction of single-family housing also increased to the highest level since May 2022. Economists predict that the housing market will help the US economy avoid a recession next year, as housing demand remains high and builders add more supply to meet that demand. Overall housing starts advanced 14.8%, while permits fell 2.5%.
Housing starts in the US unexpectedly surged by 14.8% in November, reaching the highest level since May, as falling mortgage rates attracted consumers back into the housing market. The increase in construction activity was driven by low inventory of existing homes and favorable mortgage rates. However, applications to build fell by 2.5% in November, indicating a potential slowdown in future construction. Despite this, building permits are up by about 4.14% compared to the same period last year.
The annual pace of new home construction in the US surged in November, rising for the third consecutive month, driven by falling mortgage rates and a shortage of housing inventory. Housing starts jumped by 14.8% compared to the previous month, reaching the highest level since May. Single-family building activity was the main driver, with a 40% increase in new single-family homes under construction compared to a year ago. However, building permits ticked down by 2.5% in November. Despite the increase in construction, there is still a significant housing shortfall, leading to rising rents and home prices. Lower mortgage rates are expected to continue to boost affordability and meet pent-up demand, as existing homeowners are reluctant to sell due to their ultra-low mortgage rates.
Despite a spike in mortgage rates, housing starts in the US rebounded by 7% in September to an annual rate of 1.35 million units, according to Commerce Department data. However, applications to build fell by 4.4% over the month, indicating a decline in future construction. Building permits are also down by 7.2% compared to the same time last year. The low supply of existing homes on the market is providing a favorable backdrop for homebuilders, keeping prices elevated despite efforts by the Federal Reserve to cool the economy and suppress housing inflation. The National Association of Home Builders/Wells Fargo Housing Market Index fell to its lowest reading since January 2023, reflecting lower levels of buyer traffic and decreased housing affordability due to higher interest rates. Rates are expected to remain elevated as the Federal Reserve signals a longer period of peak interest rates.
The city of Chicago is suing the National Museum of Puerto Rican Arts and Culture and the Chicago Park District over an unsanctioned expansion project in Humboldt Park. The museum began constructing an archives and storage facility without proper permits, violating city code. The city is seeking fines and the appointment of a receiver to oversee the property if the situation is not rectified. Neighbors and preservationists have raised concerns about the project, calling for the structure to be torn down and moved away from the historic building. A trial date is set for September 7th.
Lumber prices rose by up to 3% after US housing starts surged 21.7% in May to 1.63 million units, the biggest increase since January 1990. The surge comes as home builders rush to meet the growing demand of millennial first-time home buyers. Despite elevated interest rates, building permits also increased in May, signaling that high interest rates are being tolerated by potential home buyers. The recent surge in housing starts could ultimately help lower inflation, which would give the Federal Reserve more breathing room in terms of pausing its interest rate hikes.
Gold prices edged down after the release of mixed US housing data, which showed a rise in housing starts but a decline in building permits. Housing starts rose 2.2% to a seasonally adjusted annual rate of 1.401 million units last month, while building permits were down 1.5% at 1.416 million units in April. June Comex gold futures last traded at $1,986.60, down 0.32% on the day.
Single-family homebuilding in the US increased for the second consecutive month in March, while permits for future construction surged, offering some hope for the depressed housing market ahead of the busy spring selling season. However, overall housing starts fell 0.8%, and permits dropped 8.8%. The Federal Reserve's aggressive interest rate hikes have pushed the housing market into recession, with residential investment contracting for seven straight quarters, the longest such streak since the collapse of the housing bubble triggered by the 2007-2009 Great Recession.