According to data released on Thursday, Jan. 18, by the U.S. Census Bureau, the annual pace of new-home construction pulled back 4.3% to a seasonally adjusted annual rate of 1.46 million units during December after riding high in November, when the pace was 1.56 million, CNN Business reports.
Even so, housing starts in December were up 7.6% compared with a year ago.
In other good news for expanding the inventory of homes, building permits ticked up in December, climbing 1.9% from November’s revised number to a seasonally adjusted annual rate of 1.467 million.
Permits were 6.1% higher than a year ago.
Even though construction starts slowed to end 2023, there are tailwinds with mortgage rates trending lower that will help construction this year, said Kelly Mangold of RCLCO Real Estate Consulting, in a statement.
Advertisement
Related Stories
New-Home Sales
Mortgage Rates Are Up but New-Home Sales Still Solid in March
Lack of existing home inventory drove a rise in new-home sales, despite higher interest rates in March
Labor + Trade Relations
Who's Earning What in Construction
Workers in construction management roles may earn a higher median wage, but on average, lower-paid occupations have experienced somewhat faster wage growth
Build to Rent
Build-to-Rent Is Booming, Particularly in These Metros
A recent report finds that the Phoenix metro leads with more than 4,000 build-to-rent units completed in 2023, and Texas is the leading state for build-to-rent development