After a sharp decline in August, housing starts increased 7.0% in September to a seasonally adjusted annual rate of 1,473,000.
After a sharp decline in August, housing starts increased 7.0% in September to a seasonally adjusted annual rate of 1,473,000.
Compared with September 2022, however, housing starts were down 7.2%. Single-family housing starts alone rose 3.2% from August.
“The uptick in single-family production was somewhat unexpected as our latest builder surveys indicate that starts are likely to weaken in the months ahead due to recent higher mortgage rates that were near 7.6% in mid-October,” stated Alicia Huey, chairman of the National Association of Home Builders. “Meanwhile, builders also continue to face persistent labor shortages, a lack of buildable lots and higher financing costs for acquisition and development loans.”
Regionally, housing starts increased 35.3% in the Midwest, 6.5% in the South and 5.6% in the West. Housing starts dropped 24.5% in the Northeast.
Building permits declined 4.4% from August and were down 7.2% compared with September 2022. Housing completions were up 6.6% from August and 1.0% year-over-year.
The full U.S. Census Bureau and the U.S. Department of Housing and Urban Development report can be found here.