U.S. Housing Starts Dropped 0.7% in October as Building Permits Increases

Source: U.S. Census Bureau

U.S. homebuilding unexpectedly dropped in October as activity remains hampered by shortages of materials and scarce land and labor. DXY down -0.03%, EUR USD down -0.07%

• Housing starts dropped slightly by 0.7% to a seasonally adjusted annual pace of 1.520 million units in the previous month.
• Data for September was revised downwards to a pace of 1.530 million units from the initially reported figure of 1.555 million units. Permits for future home building rose by 4.0% to a pace of 1.650 million units in October.
• Hurricane Ida caused massive flooding and slowed down homebuilding in the Northeast and the densely populated regions in the South in September.
• Homebuilding in the US has been trending downwards as builders struggle with shortages and increased prices of raw materials.
• Starts have fallen from the 1.725 million unit rate in March, which was more than a 14.5 year high.
• Homebuilding remains constrained by a massive shortage of previously owned homes on the market that caused record spikes in house prices.