Housing starts slipped 4.3% to a seasonally adjusted annual rate of 1.46 million in December, according to the U.S. Census Bureau.
Compared with December 2022, housing starts were up 7.6%.
“Moderating mortgage rates are expected to provide a boost to new home construction in 2024, but an uptick in building material prices and a shortage of buildable lots and skilled labor are serious challenges for home builders,” stated NAHB’s Danushka Nanayakkara-Skillington. “A rise in single-family permits is a sign that we will see the single-family market pick up steam in the near future. However, due to tighter financing, the multifamily market will weaken.”
Building permits rose 1.9% to an adjusted rate of 1.49 million, while housing completions jumped 8.7% to 1.57 million.
Regionally, housing starts slumped 16.9% in the Northeast, 18.1% in the Midwest and 5.1% in the South. The West recorded a housing start increase of 4.7%.
The full report can be found at this link.
