This article originally appeared on the BUILDER website.
Housing starts in November rose 3.2% to a seasonally adjusted annual rate of 1,256,000, the Commerce Department reported Tuesday. Despite the gain, starts were still 3.6% below the November 2017 rate of 1,303,000.
Single‐family housing starts in November were at a rate of 824,000, 4.6% below the revised October figure of 864,000. The November rate for units in buildings with five units or more was 417,000.
Building permits were up 5% to a seasonally adjusted annual rate of 1,328,000, 0.4% above the November 2017 rate of 1,323,000. Single‐family authorizations in November were at a rate of 848,000, 0.1% above the revised October figure of 847,000. Authorizations of units in buildings with five units or more were at a rate of 441,000 in November.
Housing completions in November rose 0.4% to a seasonally adjusted annual rate of 1,099,000, 3.9% below the November 2017 rate of 1,144,000. Single‐family housing completions in November were at a rate of 772,000, 5.4% below the revised October rate of 816,000. The November rate for units in buildings with five units or more was 314,000.
Joel Kan, AVP of Economic and Industry Forecasting at the Mortgage Bankers Association, issued the following analysis: “Housing starts increased for the first time in three months, driven by a surge in multifamily construction. However, single-family starts dropped over four percent to their lowest monthly level since March 2017, and even more on a year-over-year basis – nearly 13 percent. Home building activity in November was consistent with the less favorable builder sentiment readings we’ve seen in recent months, as builders are still challenged by several factors, including high input and labor costs. These results also likely reflect slower demand for new single-family homes, as emerging economic and financial market uncertainty, coupled with affordability challenges, are keeping some potential home buyers away.”
