New Construction Reaches Highest Level Since the Great Recession

Housing starts decreased in October but remained above year-over-year rates from October 2020 while building permits increased year-over-year as well as on a monthly basis, the NAHB’s Eye on Housing reports. Though new housing starts only rose 0.4% year-over-year for the month of October, building permits increased 3.4% in the same time frame.

Multifamily starts saw the largest year-over-year increase in October while single-family starts decreased 10.6% annually. Though housing starts have not yet reached record highs since the Great Recession, new construction is at its highest level since 2007 and multifamily starts are at their highest level since 1974.

Housing Starts:

Privately‐owned housing starts in October were at a seasonally adjusted annual rate of 1,520,000. This is 0.7 percent below the revised September estimate of 1,530,000, but is 0.4 percent above the October 2020 rate of 1,514,000. Single‐family housing starts in October were at a rate of 1,039,000; this is 3.9 percent below the revised September figure of 1,081,000. The October rate for units in buildings with five units or more was 470,000.

Building Permits:

Privately‐owned housing units authorized by building permits in October were at a seasonally adjusted annual rate of 1,650,000. This is 4.0 percent above the revised September rate of 1,586,000 and is 3.4 percent above the October 2020 rate of 1,595,000. Single‐family authorizations in October were at a rate of 1,069,000; this is 2.7 percent above the revised September figure of 1,041,000. Authorizations of units in buildings with five units or more were at a rate of 528,000 in October.

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