Housing starts decreased 0.7% in October to a seasonally adjusted annual rate of 1.520 million units, according to reuters.com. The rate was lower than economists’ expectations of 1.576 million units.
Housing starts were up 0.4% compared with October 2020. Applications for building permits, a good indication of future activity, rose 4% to 1.650 million units in October.
Single-family housing starts were down 3.9% at 1.039 million units, and the rate for multifamily starts was 470,000 units.
A recent survey from the National Association of Home Builders showed confidence among single-family homebuilders rising further in November but noted “supply-side challenges, including building material bottlenecks and lot and labor shortages, remain stubbornly persistent.”
The materials pressure could ease during winter, which typically is a slow season for homebuilding in the Northeast and Midwest. Slowing demand for houses because of reduced affordability also could help alleviate pressure on supply.
