Multifamily Permits Weakening, Single-Family Production Continues to Sag

The housing market continues to weaken because stubbornly high construction costs, elevated interest rates and flagging demand are harming housing affordability, according to the National Association of Home Builders (NAHB). The multifamily units under construction is reaching a near 50-year high, and multifamily permit growth is weakening. Single-family housing starts continued to fall in November, with the pace of construction down 32% since February when mortgage rates began to rise. 

Overall housing starts decreased 0.5% to a seasonally adjusted annual rate of 1.43 million units in November, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.