Connect With PPD
Follow Us:
Sections: Economy

Housing Starts, Permits Unexpectedly Fall In November Despite Market Props

U.S. housing starts and permits unexpectedly fell in the month of November, according to a housing market report from the Commerce Department released Tuesday. Groundbreaking fell 1.6 percent to a seasonally adjusted annual 1.028 million-unit pace, and November’s starts were revised up to a 1.045 million-unit rate.

Economists polled by Reuters had forecast starts rising to a 1.04 million-unit rate from October’s previously reported 1.01 million-unit pace.

The housing market continues to suffer as a result of tepid-to-zero wage growth in the U.S. economy, which has been far outpaced by home price increases. Even though higher mortgage rates are also a factor, they have since declined from a previous high reached in September 2013 – thanks to the Federal Reserve.

Wages are not expected to increase until mid-2015 and hopefully attract first-time buyers, particularly younger Americans, into the housing market to pick up slack for baby boomers.

Last month’s loss in groundbreaking was largely in the single-family homes segment, which unfortunately, is the largest part of the market. They fell 5.4 percent to a 677,000-unit rate, while starts for the more volatile multi-family homes segment ticked up 6.7 percent to a 351,000-unit pace, which reversed only some of October’s 9.9 percent drop.

Multi-family starts continue to be driven by demand for rental units, as Americans give up on prospects for home ownership.

Last month, permits dropped 5.2 percent to a 1.035 million-unit pace after two straight months of gains, which was the biggest drop since January. New housing permits, which typically lead housing starts by three to four months, have been above a 1 million a month pace since July.

Permits for single-family homes fell 1.2 percent to a 639,000-unit pace. Permits for multi-family housing tumbled 11.0 percent to a 396,000-unit pace. That followed two strong months of big increases.

READ FULL STORY

SubscribeSign In
PPD Business Staff

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

Share
Published by
PPD Business Staff

Recent Posts

Media’s Worst Russian Collusion Sins May Soon Be Repeated

The most damning journalistic sin committed by the media during the era of Russia collusion…

9 months ago

Study: Mask-Mandates and Use Not Associated With Lower Covid-19 Case Growth

The first ecological study finds mask mandates were not effective at slowing the spread of…

3 years ago

Barnes and Baris on Big Tech’s Arbitrary Social Media Bans

On "What Are the Odds?" Monday, Robert Barnes and Rich Baris note how big tech…

3 years ago

Barnes and Baris on Why America First Stands With Israel

On "What Are the Odds?" Monday, Robert Barnes and Rich Baris discuss why America First…

3 years ago

Personal Income Fell Significantly in February, Consumer Spending Weaker than Expected

Personal income fell $1,516.6 billion (7.1%) in February, roughly the consensus forecast, while consumer spending…

3 years ago

Study: Infection, Vaccination Protects Against Covid-19 Variants

Research finds those previously infected by or vaccinated against SARS-CoV-2 are not at risk of…

3 years ago

This website uses cookies.