Close this search box.

Newsfeed: US Building Permits Crash In August, Multi-Family Starts Hit Record High

By Tyler Durden via ZeroHedge

Following yesterday’s 9th straight monthly decline in US homebuilder sentiment – the longest losing streak since 2014 – this morning’s housing starts and permits data will be watched like a hawk (the former expected to see a small bounce MoM and the latter – more forward-looking – a big tumble MoM).

The data was ‘mixed’ to say the least – August Housing Starts exploded 12.2% MoM (+0.3%  exp) while August Building Permits crashed 10.0% MoM (-4.8% exp).

Source: Bloomberg

That is the biggest monthly jump in starts since March 2021 and biggest monthly crash in permits since April 2020.

The forward-looking permits print is the lowest SAAR since June 2020…

Source: Bloomberg

Both single- and multi-family permits plunged on the month…

All the gains in starts were driven by multi-family units, which soared 28.6% MoM from 483K in July to 621K, highest on record!

Finally, given the sudden realization among homebuilders, we would not be surprised if building permits (the more forward-looking signal of today’s data points) collapsed in the next few months…

Source: Bloomberg

This is a dilemma for The Fed (who implicitly triggered this of course) as UBS notes, the decline of the US housing market is both disinflationary and inflationary – it lowers demand for building materials and associated durable goods, but people still have to live somewhere. If people are not buying houses, but are determined to move out of their parents’ basements, this means higher rents and more upwards pressure on the fantasy owners’ equivalent rent measure.

So be careful what you wish for Mr.Powell.

More From The Real Estate Guys

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.


Broadcasting since 1997 with over 600 episodes on iTunes!

real estate podcast on itunesSubscribe on Androidyoutube_subscribe_button__2014__by_just_browsiing-d7qkda4



Love the show?  Tell the world!  When you promote the show, you help us attract more great guests for your listening pleasure!


Be the first to know when new content arrives!

Explore The Archives

[gold_price content="prices"]
[gold_price content="ratio"]

The Real Estate Guys™ Guests and Contributors Have Been Featured On:

Scroll to Top