by Growth in completions and housing starts increase inventory levels as borrowing costs could drop further in light of this week’s 1st interest rate decrease in more than 4 years
WASHINGTON — Housing starts and housing completions rose above the same period last year, signaling a positive shift in the housing market that could benefit the home furnishings industry, particularly when combined with interest rate cuts that could impact the cost of borrowing for a new home.
Housing completions in particular got a late-summer boost, rising 30.2% to 1,788,000 from 1,373,000 in August 2023. They also rose 9.2% above a revised July estimate of 1,637,000. The completion of these homes was well timed particularly for families that were preparing to move before the start of the new school year in order to get their children settled into new school districts.
Single-family homes represented a majority, or nearly 58% of the total at 1,029,000 units, down 5.6% from a revised July rate of 1,090,000 and 8.4% above 949,000 in August 2023.
Housing starts totaled 1,356,000, up 3.9% from 1,305,000 in August 2023 and 9.6% above a revised July rate of 1,237,000. Single-family homes represent just over 73% of the total at 992,000 units, or 15.8% above a revised July rate of 857,000 and 5.2% above 943,000 in August 2023.
These figures were tempered slightly by an overall 6.5% drop in August building permits, which totaled 1,475,000, compared with 1,578,000 in August 2023. However, building permits were up 4.9% from a revised July rate of 1,406,000. Again, single-family homes represented the vast majority of building permit activity at 967,000, or 65.5% of the total, up 2.8% from a revised July total of 941,000 and down .5% from 972,000 in August 2023.
By region, the activity was as follows:
+ In the Northeast, there were 146,000 permits issued for new homes, down 8.2% from 159,000 in August 2023 and up 3.5% from 141,000 in July. There were 117,000 units started, down 7.9% from 127,000 started in August 2023 and down 27.3% from 161,000 in July. There were 111,000 units completed, up 8.8% from 102,000 completed in August 2023 and up .9% from 110,000 in July.
+ In the Midwest, there were 207,000 permits issued in August, down 2.8% from 213,000 in August 2023 and up 12.5% from 184,000 in July. There were 206,000 units started, up 28% from 161,000 in August 2023 and up 29.6% from 159,000 in July. There were 207,000 units completed, up 10.7% from 187,000 in August 2023 and down 8.4% from 226,000 in July.
+ In the South, there were 819,000 permits issued, down 2.5% from 840,000 in August 2023 and up 6% from 773,000 in July. There were 745,000 units started, up 1.9% from 731,000 in August 2023 and up 15.5% from 645,000 in July. There were 1.1 million units completed, up 48% from 771,000 completed in August 2023 and 22.8% from 898,000 completed in July.
+ In the West, there were 303,000 residential building permits issued, down 17.2% from 366,000 issued in August 2023 and down 1.6% from 308,000 issued in July. There were 288,000 units started, up .7% from 286,000 in August 2023 and up 5.9% from 272,000 in July. There were 367,000 completed in August, up 17.3% from 313,000 in August 2023 and down 8.9% from 403,000 in July.
