Housing starts in October were at a seasonally adjusted annual rate of 1.372 million, an increase of 1.9% compared with September but down 4.2% compared with October 2022, according to estimates from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.
Starts of detached single‐family homes were at a rate of 970,000, an increase of 0.2% compared with September.
Starts of multifamily homes (five units or more per building) were at a rate of 382,000, an increase of 4.9% compared with the previous month.
Building permits were also up month over month: They were at an adjusted rate of 1.487 million, an increase of 1.1% compared with September but down 4.4% compared with October 2022.
Permits for single family homes were at a rate of 968,000, an increase of 0.5% compared with September.
Permits for multifamily dwellings were a rate of 469,000 in October, an increase of 2.2% compared with the previous month.
Housing completions in October were at a seasonally adjusted annual rate of 1.410 million, which is down 4.6% compared with September but up 4.6% compared with October 2022.
“While higher mortgage rates have dampened homebuilder sentiment since August, single-family housing starts have remained resilient,” says Odeta Kushi, deputy chief economist for First American. “Builders have been benefitting from the lack of resale inventory and from their ability to use incentives such as mortgage rate buydowns to entice buyers off the sidelines.
“Builders have a huge competitive advantage over the resale market in this way,” Kushi adds. “The housing market remains under-built relative to demand, and if you can’t find an existing home to buy, a new home at the right price is a good alternative.”
Photo: Avel Chuklanov