Renter Nation Returns: Multi-Family Unit Starts Hit 2 Year Highs But Permits Plunge

On the heels of homebuilder sentiment hitting COVID lockdown lows…

Source: Bloomberg

…US housing starts and permits data was mixed in July with Starts surging 5.2% MoM (far better than expected and following an upwardly revised 5.9% MoM jump in June). However, Building Permits disappointed, dropping 2.8% MoM (vs 0.5% MoM decline expected)…

Source: Bloomberg

This is the fourth month in a row of declining building permits (the most forward-looking indicator for the US housing market), now at its lowest since the COVID lockdowns…

Source: Bloomberg

The decline in Permits was dominated by multi-family units (down 9.9% MoM) while Housing Starts saw multi-family units jump 11.6% MoM in July (after surging 34.5% MoM in June)…

Source: Bloomberg

The number of multi-family unit starts is at the highest since June 2023…

Source: Bloomberg

It appears Renter Nation is back and home (buying) affordability remains at historically lows