Housing starts declined 8.1% in September to a seasonally adjusted annual rate of 1.4 million, the U.S. Census Bureau announced.
The rate was down 7.7% compared with September 2021.
“Higher interest rates are hurting the ability of buyers to purchase a new home, particularly at the entry-level end of the market,” stated Jerry Konter, chairman of the National Association of Home Builders (NAHB). “Higher rates also harm the supply-side of the market by increasing the cost of construction and development loans.”
Regionally, housing starts declined 12.5% in the Northeast, 2.7% in the Midwest and 13.7% in the South. Housing starts increased 4.5% in the West.
Building permits rose 1.4% from August but dropped 3.2% compared with September 2021. Housing completions rose 6.1% month-over-month and 15.7% year-over-year.
