Housing Starts Plunged In August As Renter-Nation Collapses
If yesterday’s plunge in the NAHB sentiment survey is anything to go by, this morning’s starts and permits data should be a shitshow (expectations were for a modest MoM decline in both for August).
And sure enough, starts puked hard (down 11.3% MoM vs -0.9% exp). BUT… forward-looking permits soared 6.9% MoM (vs -1.1% exp)…
This leaves Starts (SAAR) at their lowest since June 2020 and Permits (SAAR) at their highest since Oct 2022…
Under the hood, multi-family rental starts plunged by the most since June 2020 while single-family permits rose for the 8th straight month…
Finally, if sentiment among homebuilders is collapsing again, why are they loading up on permits?
And why is construction employment still holding near its highs…
Will The Fed see permits soaring as homebuilders betting on their dovishness and step in tomorrow to curb-stop that optimism?
Tue, 09/19/2023 – 08:42
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