This past October, U.S. housing starts fell to a seven-month low, and according to Reuters, a steep decline in multifamily construction weighed down the total number of starts.
A surge in building permits, however, suggests that the housing market is still on solid ground.
"Overall, fundamentals for the sector remain solid. Household formation is rising, demand for new homes is outstripping supply, and home builder confidence remains near its highest level in a decade," Michelle Girard, chief economist at RBS in Stamford, Connecticut, told Reuters.
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