October Sees Surprising Rise in New Home Construction
Housing starts and permits increased in October, with new residential construction rising 1.9% to 1.372 million units and authorized residential permits gaining 1.1% to 1.487 million units. However, the activity remains below trend, and both permitting activity and home building are below expectations. Multifamily construction has slowed down, contributing to a surge in new supply and a slowdown in rent growth. On the single-family side, starts increased slightly, but builders still face challenges due to high demand and limited supply. Wall Street is raising forecasts for housing construction, with expectations of increased activity in 2024 and 2025.