Housing Starts, Building Permits Plunged In December… And It’s About To Get Worse

Housing Starts, Building Permits Plunged In December… And It’s About To Get Worse

US Housing Starts and Building Permits both declined in December (-1.4% MoM and -1.6% MoM respectively) with starts better than expected but forward-looking permits below expectations. This is the 3rd straight month of declines in permits and 4th straight drop in starts…

Source: Bloomberg

Total Starts and Permits hit new cycle lows, back to the 2020 COVID lockdown levels…

Source: Bloomberg

Single-family Building Permits tumbled for the 10th straight month (while multi-family starts rebounded notably in December). The pictyure was the opposite for Housing starts where single-family starts soared 11.3% MoM while multi-family starts plunged 18.9% MoM…

Source: Bloomberg

Judging by homebuilder sentiment, building permits are not bouncing back anytime soon…

Source: Bloomberg

Finally, to summarize, in 2022, about 1 million one-family houses were started, down 10.6% from 2021.

Is that what Jay Powell wants? More scarcity, less supply?

Tyler Durden
Thu, 01/19/2023 – 08:41

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