Single-family housing starts posted a modest gain in September, according to the U.S. Census Bureau and Department of Urban Development.
Overall private starts in September decreased 0.5% from the previous month to a seasonally adjusted annual rate of 1.35 million. On a year-over-year basis, the estimate is 0.7% lower than the September 2023 figure.
Within the September figure, single-family starts increased 2.7% to 1.03 million on a seasonally adjusted annual basis. On a year-to-date basis, NAHB analysis indicates single-family construction is up 10.1%.
“While single-family home building increased in September, higher mortgage interest rates in October are likely to place a damper on growth in the next month’s data,” says NAHB chief economist Robert Dietz. “Nonetheless, NAHB is forecasting a gradual, if uneven, decline for mortgage rates in the coming quarters, with corresponding increases for single-family construction.”
Holden Lewis, home expert for NerdWallet, says it will take lower interest rates before builders “dive head-first into building more homes” and they are remaining cautious in the meantime.
The September starts rate for units in buildings with five units or more was 317,000, representing a 9.4% decline and the weakest pace since May. Dietz says multifamily construction will likely remain weak moving forward as completions of apartments are elevated.”
Private housing completions in September were at a seasonally adjusted annual rate of 1.68 million, a 5.7% decline on a month-over-month basis. The estimate represents an increase of 14.6% compared to the September 2023 completions rate.
Single-family completions in September ran at a rate of 1 million, 2.7% below the estimated rate in August. The September completions rate for multifamily units was 671,000.
Permit activity declined on an overall basis in September, while single-family permit activity marginally inched up on a month-over-month basis.
Private housing units authorized by building permits in September were at a seasonally adjusted annual rate of 1.43 million, 2.9% lower than in August and 5.7% lower than in September 2023. Single-family permit authorizations increased 0.3% from August to a rate of 970,000 in September.
Multifamily permit authorizations were at a rate of 398,000 in September.
