Housing starts in August were down both from the month before and in comparison with where things stood a year ago, says a new report just released by the Census Bureau. According to that agency, overall starts had dropped by 11% from July. But the decrease at 15% was larger when juxtaposed against the numbers reported in August of 2022. The report additionally noted that while single-family starts were actually up over August of 2022, it was in the multi-family sector where the real damage was seen with a 41% decline. Residential permits overall were off from last year, with a 2.7% decline, although single-family permits were up 7.2%. But, again, the numbers were daunting in the multi-family sector, where permits were down by 18% from last August. Despite that multi-family decline, as of last month there was a reported 995,000 multi-family units under construction nationally. A separate report issued by the American Banking Association notes that housing start levels in August were at their lowest point since the summer of 2020. The report also noted that a "resurgence in mortgage rates has pushed prospective buyers to the sidelines and weighed on demand." The larger housing starts decline picture, notes the site Bloomberg, is highlighting the “toll of declining housing affordability.” Alicia Huey, chairman of the National Association of Home Builders, pointed to the ongoing increase in mortgage rates as a primary reason for the housing starts slump. Interviewed by the publication The Street, Huey continued: “Builders continue to grapple with shortages of construction workers, buildable lots, and distribution transformers, which is further adding to housing affordability woes.” Generally, according to NAHB figures, single-family permits have been significantly higher for most of the last decade when compared to multi-family permits. By Garry Boulard
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