"Residential construction fell to its lowest point since May 2020, according to an October U.S. Census Bureau report that was delayed by last year's government shutdown. Widening air pockets of demand over the past year led to an overbuild of speculative homebuilder inventory in formerly booming Sun Belt and Mountain West markets. Builders hit the brakes on new production to reset the supply-and-demand balance."
"Overall, housing starts declined 4.6% sequentially and 7.8% year-over-year in October. Annually, single-family starts fell 7.8% nationally to 874,000, and starts on units in buildings with five units or more fell by 10.8%. Single-family permit authorizations in October totaled 876,000, down 9.4% from the prior year, suggesting that any appreciable spike in housing starts in the months ahead is unlikely."
Residential construction fell to its lowest point since May 2020. Widening air pockets of demand over the past year produced an overbuild of speculative homebuilder inventory in formerly booming Sun Belt and Mountain West markets. Builders paused new production to reset the supply-and-demand balance. Early indicators point to 2026 as another sluggish year for new-home construction, especially for builders and multifamily developers facing declines in sales prices and compressed profit margins while working through existing inventory. Housing starts fell 4.6% sequentially and 7.8% year-over-year in October, with single-family starts at 874,000 and single-family permits totaling 876,000, down 9.4% annually; the South and West experienced the largest regional declines.
Read at www.housingwire.com
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