Housing Starts & Permits Explode Higher In August, Led My Multi-Family

After last months big rebound in permits (and drop in starts) both were expected revert in August. But, instead, they both exploded higher:

• Housing Starts +12.3% MoM (+5.0% exp)

• Building Permits +7.7% MoM (-1.3% exp).

Source: Bloomberg

On a YoY basis, the surge is even more dramatic. The largest annual rise in permits since March 2017 and biggest annual jump in starts since Sept 2018.

Source: Bloomberg

This is the highest level of starts since June 2007

Source: Bloomberg

Multifamily dominated the outsized gains:

Single family starts rose 4.4% to 919k; multifamily starts rose 32.8% to three-month high of 445k

Three of four regions posted starts increases in August, powered by strongest rate of homebuilding in the Midwest since May 2018. Starts in the South were the highest since January, while building permits in the nation’s largest region advanced to a 12-year high.

Time for more rate cuts?