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New residential construction decreased in November, according to the U.S. Census Bureau. NAM Chief Economist Chad Moutray laid it out for us.  

The big picture: “New residential construction activity edged down 0.5% from 1,434,000 units at the annual rate in October to 1,427,000 units in November,” said Moutray. 

The details: “Single-family housing starts declined 4.1% from 863,000 units to 828,000 units, the slowest pace since May 2020,” said Moutray. “At the same time, multifamily activity, which can be highly volatile from month to month, rose 4.9% from 571,000 units to 599,000 units, the highest level since April.”

The long term: “On a year-over-year basis, new housing starts have dropped 16.4% from 1,706,000 units in November 2021, with single-family construction activity plummeting 32.1% over the past 12 months,” said Moutray.
 
The background: “Higher mortgage rates and issues with affordability have sharply lessened demand in the housing market, which has fallen into a recession in recent months,” said Moutray.

A look ahead: “Meanwhile, new housing permits—a proxy for future residential construction—plunged 11.2% from an annualized 1,512,000 units in October to 1,342,000 units in November,” said Moutray. “On a year-over-year basis, housing permits have fallen 22.4% from 1,729,000 units in November 2021, with single-family permits tumbling 29.7% over the past 12 months.”