Housing starts fell 4.2% in October to a seasonally adjusted annual rate of 1.4 million. Compared with October 2021, housing starts were down 8.8%.
“Mirroring ongoing falloffs in builder sentiment, builders are slowing construction as demand retreats due to high mortgage rates, stubbornly elevated construction costs and declines for housing affordability,” stated Jerry Konter, chairman of the National Association of Home Builders (NAHB).
It will be the first year since 2011 to post a calendar year decline for single-family housing starts, according to NAHB.
Regionally, month-over-month, housing starts fell 34.7% in the Northeast, 11.1% in the Midwest and 10.6% in the West. Housing starts in the South increased 6.7%.
Building permits fell 2.4% for the month to a rate of 1.5 million, a 10.1% decline compared with October 2021.
Housing completions in October were 6.4% below September rates at 1.3 million. Compared with October 2021, however, housing completions were up 6.6%.
The full Census Bureau report can be found here.
