| Housing starts in the U.S. fell 10.2 percent in September to a seasonally adjusted annual rate of 1,191,000, according to data released this week by the U.S. Census Bureau and the Department of Housing and Urban Development. Single-family housing starts for the period declined at a more modest rate of 1.7 percent, to a seasonally adjusted annual rate of 963,000.
"While there's no question that the housing downswing continues to be played out in markets across the country, today's numbers show that builders are pulling back on production until sales improve," noted NAHB Chief Economist David Seiders. "This is exactly what our latest builder surveys have told us. We do expect some additional downward movement in housing production going into next year, at which point starts should begin to stabilize as sales turn upward in the second quarter."
Building permits, which can be an indicator of future building activity, also declined in September. Overall permit issuance fell 7.3 percent to a rate of 1.23 million units, with single-family permits down 7.1 percent to 868,000 units and multifamily permits down 7.7 percent to 358,000 units.
Regionally, where housing starts often display significant month-to-month volatility, the Northeast posted a 45.4 percent gain in September while the Midwest, South and West posted declines of 28.4 percent, 11.7 percent and 10.1 percent, respectively.
Building permits were also down in three out of four regions, with the Midwest being the only one to post an increase for the month. While that region registered a 3 percent gain, permit issuance was down 4.1 percent in the Northeast, 2.4 percent in the South and 23.3 percent in the West.
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