Hardware Retailing The Industry's Source for Insights and Information
Builders have faced significant challenges in recent months with elevated mortgage rates and high construction costs, according to the latest residential housing market report and an analysis by the National Association of Home Builders.
Overall housing starts dropped to a 4.6% annual seasonally adjusted rate in October to 1.25 million units, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This number represents the number of housing units builders would begin over the next 12 months if October’s activity continues.
Single-family housing starts rose 5.4% to a seasonally adjusted annual rate of 874,000 units, but were 7.8% lower than last year. Single-family starts are down 7% on a year-to-date basis.
Multifamily starts fell to 22.0% to an annualized pace of 372,000 units. The three-month average for multifamily construction has decreased to 424,000 units, 7.9% below last year’s levels.
Regionally, combined single-family and multifamily starts increased 9.1% in the Midwest and 8.5% in the Northeast, while declining 1.9% in the West and 4.1% in the South.
1.3 million housing units stood under construction in October, down 10.1% from last year. Single-family homes under construction fell to 596,000 units, down 7% year-over-year and the lowest level since November 2020. Multifamily units under construction declined to 790,000, down from around 1 million units in December 2023 and 4% lower than a year ago.
Single-family home completion remained strong at around 1 million units, reflecting continued progress in finishing projects already underway, up 2% from last year. Multifamily completions decreased sharply to 41.7% year over year.
Overall building permits decreased 0.2% in October to a 1.41-million-unit annualized rate. Single-family permits declined 0.5% to 876,000 units, down 9.4% from last year. Multifamily permits were unchanged at a 536,000-unit pace compared to the month before. Total permits increased 5.9 percent in the Midwest, while declining 3.3 percent in the West, 4.0 percent in the South, and 9.3 percent in the Northeast.
