Building permits 1328K versus 1260K estimate

The US housing starts and building permits for the month of November came in better-than-expected:

  • housing starts 1256K vs 1228K est. The prior month was revised lower to 1217K from 1228K
  • building permits came in at 1328K versus 1260K estimate. The prior month was unrevised at 1265K
  • single-family permits, +0.1%
  • multi family permits +14.8%

The rise is largely influenced by the multi family search. The pace was the highest since last August. Single-family starts fell to the lowest since May 2017.

Key takeaways:

  • The housing starts have bounced higher and lower this year. It is not accelerating, but it is also not falling on the back of higher prices and higher interest rates.
  • The gains are concentrated in multifamily homes. This tends to be more volatile.
  • An encouraging sign is permits rose 5%. That is good for future housing starts.