US housing starts rose in October

November 26, 2018 12:13 pm

US housing starts rose in October, new figures show.

New home instruction rose 1.5% to a seasonally-adjusted annual rate of 1.23million, according to the Commerce Department.

The gains as US housing starts rose in October came from apartments, while starts for single-family houses slipped 1.8%.

Since interest rates rose in May, home construction fell for several months and ground breaking has fallen 2.6% over the past 12 months.

Some construction in the South was been disrupted by Hurricane Florence in September and Hurricane Michael in October. But in October, ground breakings recovered in the South, rising 4.7%.

Homebuilders are feeling slightly less confident, even if they expect to keep building.

Despite the recent market softness, 2018 is still shaping up to be the best year since the recession, says the National Association of Home Builders (NAHB).  Total housing starts are 5.6% higher for 2018 on a year-to-date basis, according to data from the Census Bureau and the Department of Housing and Urban Development.

Single-family starts are 5.5% higher year-on-year for the first ten months of 2017. Single-family permits, a useful indicator of future construction activity, were slightly lower at 0.6% in October.

Multifamily starts (2+ unit production) rose 6.2% in October to a 343,000 annual rate. After a strong start to the year.

On a year-to-date basis, multifamily (5-plus units) production is 5.9%  higher so far in 2018, while multifamily 5-plus unit permitting is has fallen 0.2% year-to-date increase relative to 2017.

Regional data shows that on a year-to-date basis positive conditions across the South, with multi-family home starts up 3.9%.

Source: https://www.census.gov/construction/nrc/index.html and http://eyeonhousing.org/2018/11/single-family-starts-stable-in-october-as-caution-grows/?_ga=2.249991174.1096762607.1542751363-2027805985.1542751362