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2026-02-18 22:00:11
[US Single-Home Starts Rebound in December, But Declining Building Permits Highlight Concerns] ⑴ Data released by the US Commerce Department on Wednesday showed that seasonally adjusted annualized single-home starts in December reached 981,000 units, a 4.1% increase month-over-month, rebounding from 942,000 units in November. This data was delayed due to last year's government shutdown. ⑵ However, single-home building permits, representing future construction activity, fell 1.7% month-over-month to 881,000 units, from 896,000 units in November. The decline in permits indicates that despite the rebound in starts, high interest rates and material costs continue to constrain builders' confidence. ⑶ Tariffs on imported lumber and other goods have pushed up material prices, while labor shortages caused by immigration restrictions have also increased construction costs. A survey conducted Tuesday by the National Association of Home Builders showed that builder sentiment deteriorated further in February, with high land and construction costs and the continued high price-to-income ratio being the main constraints. (4) The Trump administration has introduced a series of measures to improve housing affordability, including purchasing mortgage-backed securities and prohibiting institutional investors from buying single-family homes. Although mortgage rates have fallen somewhat, concerns about federal government debt have kept Treasury yields high, hindering progress. Economists believe that increasing supply is key to solving housing affordability.
