Unexpected Increase in Housing Starts and Permits in October

According to the U.S. Department of Housing and Urban Development and U.S. Census Bureau data, October housing starts rose to a seasonally adjusted annual rate of 1,372,000—the highest level in three months and a 1.9% increase from the revised September estimate (1,346,000), HousingWire reports. But that's still 4.2% below last year's October rate (1,432,000).

The strongest home building activity occurred in the Midwest and West, while a combination of weather, supply-chain issues, and permitting difficulties hindered construction in Northeastern markets.

Overall, single‐family housing starts in October came in at a rate of 970,000, which is 0.2% above the revised September figure of 968,000. It also surpassed last year’s level, according to Bright MLS Chief Economist Lisa Sturtevant. Meanwhile, the housing starts rate for units in buildings with five units or more, dropped slightly in October to 382,000 from 383,000 in September.

Single-family permits increased (+0.5%) to 968,000 in October, up from 963,000 in September. Multifamily permits came in at 469,000, an encouraging uptick from September’s 459,000. Completed homes fell to seasonally adjusted annual rate 1,410,000, a 4.6% drop from the prior month but 4.6% above the October 2022 level.

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