WASHINGTON — November housing starts rose by 3.2% to a 1.256 million annual rate, according to data released Tuesday by the Commerce Department.
The rate was above the 1.220 million pace expected following downward a revision to the October data and an upward revision to the September data. After those revisions, the November starts pace was slightly above the 1.234 million average in the third quarter.
Starts in the West fell by 14.2% to a 289,000 pace in November after a 5.6% decline in the previous month, showing an impact from the California wildfires. Starts were down 19.2% in the Midwest and up 37.8% in the Northeast and 15.1% in the South. There should be a boost in starts in the coming months as rebuilding efforts begin in California due to the wildfires in November.
Building permits posted a 5.0% increase to a 1.328 million rate, above the 1.253 million rate expected. Permits in the West were up 1.6%, likely showing a slight pickup in activity in the weather-impacted areas. Permits rose in the South, but were flat in the Northeast and down in the Midwest.
As with starts, the West should post a rebound in the coming months. Homes permitted but not started rose by 3.5%, with a flat reading for the West region. The NAHB index slipped to a reading of 56 in November when it was released on Monday, with higher mortgage rates and prices blamed for the decline.
Single-family housing starts fell by 4.6% in November, while multi-family starts rose by 22.4%. Single-family building permits rose by 0.1%, and multi-family permits also rose by 14.8%. Homes under construction were up 0.7% in November, and completions rose by 0.4% to a 1.099 million pace.
