U.S. homebuilding slumps as permits hit 3-1/2-year low | Honolulu Star-Advertiser
Higher mortgage rates and weak affordability kept buyers on the sidelines as single-family permits fell to the lowest level since March 2023, officials said.
- On Tuesday, federal data from the Commerce Department's Census Bureau showed single-family housing starts dropped 4.6% to 859,000 units, the lowest level since September 2025, while overall starts fell 5.2% to an annualized rate of 1.22 million.
- Surging mortgage rates, averaging 7.40% last week per Freddie Mac data, hit their highest level in nearly three years, while homebuilder confidence plunged in October to the lowest level since June 2012. The affordability crisis dominates campaign messaging ahead of the November 3 midterm elections.
- Single-Family building permits fell 4.0% to 845,000 units, their weakest reading since March 2023. Permits for multifamily projects increased 5.9% to 503,000 units, partially offsetting the single-family decline.
- Builders are hesitating to break ground as unsold inventory accumulates; completions dropped 2.4% to 840,000 units, the lowest level since May 2020. Stephen Stanley, chief U.S. economist at Santander U.S. Capital Markets, noted that slower starts could prevent market imbalance.
- President Donald Trump earlier this year refused to sign a bipartisan housing affordability bill, calling it "a big yawn." Carl Weinberg, chief economist at High Frequency Economics, warns residential construction will likely falter until the energy shock is better understood.
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U.S. homebuilding slumps as permits hit 3-1/2-year low | Honolulu Star-Advertiser
WASHINGTON >> U.S. single-family homebuilding fell sharply in September and permits for future construction tumbled to a 3-1/2-year low as higher mortgage rates suppressed demand, suggesting residential investment resumed its declining trend in the third quarter.
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US Housing Starts Plunge as Building Permits Fall to a 3½-Year Low
US single-family home construction dropped sharply in September, while permits for future projects fell to their lowest level in three and a half years, signaling ... The post US Housing Starts Plunge as Building Permits Fall to a 3½-Year Low first appeared on [your]NEWS.
US single-family housing starts plunge
WASHINGTON — US single-family homebuilding fell sharply in September and permits for future construction tumbled to a 3-1/2-year low as higher mortgage rates suppressed demand, suggesting residential investment resumed its declining trend in the third quarter.
According to federal government data published on Tuesday, housing construction declined 5.2%, to an annualized rate of 1.22 million
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