Housing starts slip in November
Housing starts in November slipped 0.5% to a seasonally adjusted annual rate of 1.427 million compared to the revised October estimate of 1.434 million, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development reported this morning.
The latest reading is 16.4% below the November 2021 rate of 1.706 million.
Single-family starts in November were at a rate of 828,000, falling 4.1% below the revised October figure of 863,000. On a year-over-year basis, single-family starts plummeted 32.1% compared to the November 2021 rate of 1.22 million.
The November rate for units in buildings with five units or more was 584,000, rising 4.8% from the prior month and soaring 24.5% above the same period a year ago.
Residential building permits in November declined 11.2% to a seasonally adjusted annual rate of 1.342 million from the revised October rate of 1.512 million. The latest permit data is also 22.4% below the November 2021 rate of 1.729 million.
Single-family authorizations in November fell 7.1% to a rate of 781,000 compared to the revised October figure of 841,000.
Authorizations of units in buildings with five units or more were at a rate of 509,000 in November. This is a 17.9% decrease from the prior month and down 10.7% compared to November 2021.
The National Association of Home Builders (NAHB) has pointed to high mortgage rates, elevated construction costs running well above the inflation rate, and lagging consumer demand, due to deteriorating affordability conditions, as the key ingredients in driving down builder confidence in every month of 2022.
Released yesterday, the NAHB/Wells Fargo Housing Market Index (HMI), showed builder confidence in the market for newly-built single-family homes dropping two points to 31. This is the lowest confidence reading since mid-2012, with the exception of the onset of the pandemic in the spring of 2020, the NAHB said.
Builder confidence has declined in every month of 2022.
Here’s how housing starts and permits break down on a regional basis compared to the prior month.
- In the Northeast, total housing starts fell 18.6% but single-family starts climbed 15.1%. Total permits rose by 1.8% as single-family permits were flat.
- In the Midwest, overall starts are down 6.5% as single-family starts dropped 26.7%. Combined permits are down 6.2% with single-family permits seeing a 9.1% decline.
- In the South, combined starts edged ahead by 0.1% as single-family starts decreased 6.6%. Total permits in the region fell 12.2% with single-family permits declining 7.2%.
- In the West, total starts moved ahead 8.3% as single-family starts increased 16%. Combined permits in the West decreased 16.4% as single-family permits are down 7.8%
