Overview

• New home construction fell by approximately 15% in January, with housing starts dropping to a seasonally adjusted annual rate of 1.33 million units.
• The decline in housing starts is partly attributed to harsh winter conditions and the continuation of elevated mortgage rates.
• Building permits, a forward-looking indicator, also decreased by 1.5% in January, though they remain 8.6% higher than the same period last year.
• Economists express concerns over the housing market's stifled supply, with the U.S. estimated to be down about 4 million homes to meet demand.
• Optimism exists for a potential increase in single-family home construction in 2024, driven by expectations of falling borrowing costs.