The extreme lack of existing inventory on the market continued to support newbuild demand and construction activity in November, as single-family starts jumped to an 18-month high. The rise is at odds with the stabilisation in new home sales and slowdown in building permit issuance in recent months, so we suspect it will be at least partially reversed in December. (See Chart 1.) But the big picture is that with mortgage rates falling and inventory tight, housing starts are likely to stay a lot stronger than they were in the second half of 2022.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services