Year-over-Year: single-family down 1.2%, multi-family down 17.4%

Contact: Kristen Crossman
Email | Phone: (651) 697-7579

[ST. PAUL, MINN.] The seasonally adjusted annual rate of housing units authorized in the United States fell 2.9% in September, according to the United States Census Bureau’s Building Permit Survey report released this morning. Single-family permits were up 0.3% month-over-month, two- to four-unit permits up 5.3% month-over-month, and multifamily permits were down 10.8%.

The seasonally adjusted rate of building permits remains 5.7% below where it was in September 2023.

“Despite the Fed’s rate cut last month, interest rates are roughly 50 basis points above where they were in September,” said Nick Erickson, executive director of Housing Affordability Institute. “Buyers in the U.S. cannot rely on rate cuts as a solution to the housing crisis. Zoning reform, streamlining housing approvals, and reducing other regulatory barriers can help address this crisis.”

MONTHLY ACTIVITY

Building Permits:

In September, the number of privately-owned housing units authorized by building permits reached a seasonally adjusted annual rate of 1.428 million. This marks a 2.9% drop compared to the revised August figure of 1.47 million and is 5.7% lower than the rate of 1.515 million recorded in September 2023. Permits for single-family homes were issued at a rate of 970,000, slightly up by 0.3% from the revised August total of 967,000. Meanwhile, permits for buildings with five or more units were authorized at a rate of 398,000 in September.

Housing Starts:

In September, privately-owned housing starts were at a seasonally adjusted annual rate of 1.354 million, a 0.5% decline from the revised August estimate of 1.361 million, and 0.7% below the rate of 1.363 million seen in September 2023. Single-family housing starts came in at 1.027 million, reflecting a 2.7% increase from the revised August figure of 1 million. The rate for buildings with five or more units was 317,000 in September.

Housing Completions:

Housing completions for privately-owned units in September were at a seasonally adjusted annual rate of 1.68 million. This is a 5.7% decrease from the revised August estimate of 1.781 million but represents a 14.6% increase compared to the September 2023 rate of 1.466 million. Completions of single-family homes were at a rate of 1 million, down 2.7% from the revised August figure of 1.028 million. For buildings with five or more units, the completion rate was 671,000 in September.

Source: United States Census Bureau’s Building Permit Survey