The Census Bureau, Washington, D.C., reported that privately-owned housing starts in September were at a seasonally adjusted annual rate of 1,354,000, marking a slight 0.5% decline from the revised August estimate. Compared to September 2023, housing starts were down by 0.7%.
Single-family housing starts in September rose by 2.7% from August, reaching a rate of 1,027,000. “Single-family construction increased in September, mirroring NAHB’s survey of builder confidence,” says Carl Harris, chairman of the National Association of Home Builders and a custom home builder from Wichita, Kansas. “In the long run, the most effective way to tackle the nation’s housing affordability crisis is to increase the housing supply. And as the election looms, policymakers need to be focused on the supply-side of the market to let builders build.”
While single-family home building saw an uptick, building permits for privately-owned housing units fell to an annual rate of 1,428,000 in September, down 2.9% from the revised August rate and 5.7% below the rate from September 2023.
“While single-family home building increased in September, higher mortgage interest rates in October are likely to place a damper on growth in 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. Multifamily construction will remain weak as completions of apartments are elevated.”
Housing completions also saw a decrease, with privately-owned completions in September at a rate of 1,680,000, down 5.7% from the revised August figure but up 14.6% compared to September 2023. The report highlights the mixed signals in the residential construction sector, with single-family activity showing resilience amid broader market pressures.
