U.S. new-home construction picked up in October on a rebound in apartments and other multifamily housing, offering some hope that the market is stabilizing despite rising prices and borrowing costs.

Residential starts increased 1.5% to an annualized rate of 1.23 million from the prior month’s upwardly revised 1.21 million, government figures showed Tuesday. While that matched the median estimate of economists, single-family home starts fell for a second month. Permits, an indication of future construction, fell 0.6% to a 1.26 million rate, also in line with projections.

The data suggest that builders are seeing steady demand from buyers amid a solid labor market and tax cuts that have boosted take-home pay. Those are cushioning the impact of mortgage rates at an eight-year high and home prices still outpacing wage gains. An easing in lumber prices from a record earlier this year may also be providing some relief to developers. At the same time, the figures followed a report Monday showing the biggest drop in homebuilder sentiment since 2014, indicating developers are becoming less optimistic that future demand will withstand headwinds.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Dig Deeper


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.