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Economics
Real Estate

US Housing Starts Rise Unexpectedly Though Building Permits Drop

  • Pace of new construction rose 12.2% in August to 1.58 million
  • Permit applications decline to slowest pace since mid-2020
Bloomberg business news
Housing Market Bending, Not Breaking on Rates: Evercore Analyst
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New US home construction rose unexpectedly in August, though the slowest pace of building permits in more than two years underscores how higher mortgage rates are weighing on demand.

Residential starts increased 12.2% last month to a 1.58 million annualized rate, led by a jump in multifamily projects, according to government data released Tuesday. The pace of starts topped all estimates in a Bloomberg survey of economists.