Single-family starts have increased for seven straight months. The housing market is defying slowing economic growth, thanks to pent-up demand and historically low mortgage rates. Recent data have shown a moderation in the labor market and consumer spending half-way through the fourth quarter as the country battles a fresh wave of Covid-19 cases.
• Housing starts rose 1.2% in November.
• Single-family starts have increased for 7 straight months & hit the highest level since April 2007.
• Building permits increased 6.2% in November with multi-family housing projects rising 19.2%
• Homebuilding has surged 12.8% on a year-over-year basis
• The coronavirus pandemic has left 21.8% of the labor force working from home. That has led to a migration from city centers to suburbs and other low-density areas as Americans seek out spacious accommodation for home offices and schools.
Thanks to Nikki Varanakis with Intercap for providing this valuable update!