Last month, construction rebounded sharply, with builds climbing 8.5 percent, completions increasing 12.4 percent and permits rising 14.1 percent year-over-year. According to Commerce Department figures for October:
Housing Starts: 1.31 million
- +3.8% month-over-month
- +8.5% year-over-year
- Multifamily Starts: 362,000
- Single-Family Starts: 936,000
Building Permits: 1.46 million
- +5% month-over-month
- +14.1% year-over-year
- Multifamily Permits: 505,500
- Single-Family Permits: 909,000
Completions: 1.26 million
- +10.3% month-over-month
- +12.4% year-over-year
- Multifamily Completions: 354,000
- Single-Family Completions: 897,000
What the Industry’s Saying
“Home builders are seeing more building opportunities as market conditions remain solid. Builder sentiment remains strong, and we are seeing an uptick in buyer traffic.” – Greg Ugalde, Chairman, National Association of Home Builders
“Tremendously good news for the housing sector: the issuance of housing permits booming ahead to their highest level in over a decade. At 1.46 million units on an annualized basis, housing permits are nearly to the level needed for the country over the long haul. Since new-home construction kicks off the chain reaction of people trading up and trading down by buying new and selling their existing homes, more housing inventory will surely show up in the market next year. Permits are just paper, while housing starts are shovels in the ground—and permits generally lead starts. At the moment housing starts have made a gain, though not as dramatically. At 1.31 million units in October, they are still a bit light compared to the demand for housing. Directionally though, it is still good news as these October figures are 8.5 percent higher than a year ago. This growth is also contributing to broader GDP growth and therefore diminishes the chances of an economic recession in 2020. Let’s root for even greater production in the upcoming months.” – Lawrence Yun, Chief Economist, National Association of REALTORS®
