Construction on new residences declined 0.7% from September to October, falling for the third time in the past four months to the slowest pace since April, according to the U.S. Census Bureau.
The NAM says: “Housing construction has been challenged this year by rising construction costs, affordability issues and difficulties in finding workers,” said NAM Chief Economist Chad Moutray.
- Activity decreased from 1.53 million units at the annual rate in September to 1.52 million units in October.
Single-family vs. multifamily homes: Housing starts for single-family homes have declined 17.2% in the past eight months. At the same time, multifamily construction activity has risen 2.3%.
But permits are up: Housing permits rose 4.0% from an annualized 1.58 million units in September to 1.65 million units in October. Single-family permits rose 2.7% in October, while multifamily permits rose 6.6%, showing rebounds.
The final word: “As with starts, housing permits have drifted lower year to date, largely on affordability, workforce and supply chain issues,” Moutray said. “Yet, the latest permits data suggest that construction should improve somewhat in the coming months.”