Housing Starts Down 11.3% in August Driven by Multifamily

September 19, 2023, from Floor Focus Daily News

Washington, DC, September 19, 2023 – Privately‐owned housing starts in August were at a seasonally adjusted annual rate of 1,283,000, 11.3% below the revised July estimate of 1,447,000 and 14.8% below the August 2022 rate of 1,505,000, according to the U.S. Census Bureau. Single‐family housing starts in August were at a rate of 941,000; this is 4.3% below the revised July figure of 983,000. The August rate for units in buildings with five units or more was 334,000.

Privately‐owned housing units authorized by building permits in August were at a seasonally adjusted annual rate of 1,543,000. This is 6.9% above the revised July rate of 1,443,000 but is 2.7% below the August 2022 rate of 1,586,000. Single‐family authorizations in August were at a rate of 949,000; this is 2.0% above the revised July figure of 930,000. Authorizations of units in buildings with five units or more were at a rate of 535,000 in August.

Privately‐owned housing completions in August were at a seasonally adjusted annual rate of 1,406,000. This is 5.3% above the revised July estimate of 1,335,000 and is 3.8% above the August 2022 rate of 1,355,000. Single‐family housing completions in August were at a rate of 961,000; this is 6.6% below the revised July rate of 1,029,000. The August rate for units in buildings with five units or more was 433,000.

Reports Truist, “Per the U.S. Census Bureau, total housing starts (on a seasonally adjusted annualized basis), were 1,283K units in August, which was notably below the consensus estimate of 1,440K units. Despite this, unadjusted single family starts grew again during the month, though the 2.1% y/y growth is a deceleration from the July result. Note that the August 2023 single family result is down 14.2% from 2021 levels. Single family construction activity is rebounding on low existing home supply, but total starts are down 8.0% y/y on very weak multi-family starts (5+ units), which contracted 41.6% y/y during the month. Permitting has been weak for multi-family over the last several months, which is beginning to show in starts.”

Related Topics:U.S. Census Bureau