Housing starts in September totaled 1.439mm, just under the estimate of 1.461mm and down from 1.566mm in August. Of note, and on the heels of the 38 print in yesterday’s NAHB builder survey, single family starts fell to 892k from 936k and that is the least since May 2020. Multi family starts, which are very volatile month to month, fell to 547k from 630k in August and vs 477k in July and 562k in June. We know all about the tightness in the rental market but we are slowing getting more needed supply.
With respect to permits, they fell again for single family, also to the lowest since 2020 but multi family permits increased after the August drop.
Bottom line, it’s obvious why single family starts are falling and obvious why multi family construction remains healthy. The rental market supply/demand was offsides even before the mortgage rate spike which means even more demand for rentals.
Single Family Starts
Multi Family Starts
Peter is the Chief Investment Officer at Bleakley Advisory Group and is a CNBC contributor. Each day The Boock Report provides summaries and commentary on the macro data and news that matter, with analysis of what it all means and how it fits together.