Single-Family Home Construction Hits 10-Year Highs

US homebuilding rose in November, with the construction of single-family housing units running to 10-year highs

Housing starts increased 3.3% to a seasonally adjusted annual rate of 1.297-M units, the Commerce Department said on Tuesday.

That was the highest mark since October 2016. But October’s sales pace was revised down to 1.256 -M units from the previously reported 1.290-M units.

Economists polled  had forecast housing starts decreasing to a pace of 1.250-M units last month.

Homebuilding has weakened this year, reflecting supply bottlenecks. Demand for housing, however, remains robust amid a labor market that is near full employment.

Builders have struggled with land and labor shortages as well as more expensive lumber.

Activity also took a hit from recent hurricanes that devastated parts of the heavily-populated South. A survey on Monday showed confidence among homebuilders soaring to near an 18.5 year high in December, amid optimism over buyer traffic and sales over the next 6 months.

Last month, single-family homebuilding, which accounts for the largest share of the housing market, jumped 5.3% to a rate of 930,000 units. That was the highest level since September 2007.

Single-family home construction in the South spiked 8.4% last month to the highest mark since July 2007 as the hurricane-related disruptions continued to fade and communities in the region replaced houses damaged by flooding.

Single-family starts in the West surged 11.4% to their highest level since July 2007. They were unchanged in the Northeast and fell 11.1% in the Midwest.

Starts for the volatile multi-family housing segment fell 1.6% to a rate of 367,000 units.

Building permits dropped 1.4% to a rate of 1.298-M units in November. Single-family home permits rose 1.4-M, while permits for the construction of multi-family homes declined 6.4-M.

MAGA

  construction, demand, Family, home, single, supply

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Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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