Housing starts stumble in September

10/17/2019
Housing starts for September fell 9.4% to a seasonally adjusted annual rate of 1.256 million from the revised August estimate of 1.386 million, the Commerce Department reported today.

But starts are 1.6% above the September 2018 rate of 1.236 million.

Single-family starts in September were at a rate of 918,000, which is 0.3% above the August figure of 915,000.

Last month, housing starts reached their highest level since June 2007.

Regionally, single-family starts dropped 1.6% in the Northeast, fell 8.3% in the Midwest, and declined 8.7% in the West. In the South, single-family starts were up 7.1%.

On a regional and year-to-date basis, combined single-family and multifamily starts in September rose 6% in the South. Starts declined 0.6% in the Northeast, 6.2% in the Midwest and 12.2% in the West.

“Single-family builders continue to see positive conditions for housing, and this is reflected in NAHB’s Housing Market Index, which measures builder sentiment,” said Greg Ugalde, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Torrington, Conn. “However, builders are still being somewhat cautious as they continue to deal with supply-side challenges which impact housing affordability.”

The multifamily sector, which includes apartment buildings and condos, fell 28.2% to a 338,000 pace.

“Multifamily housing starts fell from an unsustainably high level in August and are running at a solid pace despite the sharp monthly decline,” said NAHB Chief Economist Robert Dietz. “Meanwhile, the rebound for single-family construction continues. Single-family permits have increased since April, and single-family starts have posted gains since May. In another positive development, September marked the first monthly increase for the number of single-family homes currently under construction since January.”

Housing permits fell 2.7% to a seasonally adjusted annual rate of 1.387,000 million from the revised August rate of 1.425 million. The latest figure is 7.7% above the September 2018 rate of 1,288,000.

Single‐family authorizations in September were at a rate of 882,000, which is 0.8% above the revised August rate of 875,000.  Authorizations of units in buildings with five units or more were at a rate of 470,000 in September.

The Northeast saw a 14.5% decline in single-family permits for September but they soared 13.6% in the Midwest. Single-family permits rose 1.4% in the South but fell 3.3% in the West.

On a year-to-date basis, total permits rose 8.1% in the Northeast and 3.4% in the South. Total permits fell 4.9% in the Midwest and 3.5% in the South.
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