Housing Starts to Fall to 3 Year Lows


Bloomberg is reporting tonight that US housing starts will likely fall to their lowest level in three years when the number is announced tomorrow (Tuesday).

Builders probably started work last month on the fewest new houses in three years as higher mortgage rates discouraged home buyers, economists said ahead of a U.S. government report today (Tuesday).

Housing starts fell to a 1.746 million annual rate last month, according to the median forecast in a Bloomberg News survey, from the previous month’s 1.795 million. Building permits probably fell to a 1.74 million pace, from July’s 1.763 million, economists said.

In addition, the National Association of Homebuilders is reporting that “homebuilders’ confidence in the housing market dropped this month to a 15-year low.” Looks like all signs are finally pointing to a slowdown we should have had a few years ago.

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Joshua Dorkin

Joshua Dorkin (@jrdorkin, Google+) founded BiggerPockets.com when he saw a need for free, trustworthy information about real estate investing online. Over the past 12 years, Josh has grown the site from self-funded hobby to full-time job and passion. Today, BiggerPockets brings together over 600,000 members, housing the world’s largest library of real estate content, iTunes’ #1 real estate podcast, and an array of analysis tools, all geared toward helping users succeed.


  1. That is interesting. I wonder what the repercussions will be for this in 12 months time. Will it mean a shortage of housing, or do we have so much already that we won’t have to worry about that for a while?

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