Single-family construction began in November after the storms

Hurricanes in Florida and North Carolina slowed homebuilding in October, but things are looking up. US Census Bureau The November housing starts report shows single-family starts rose 6.4% from the previous month, coming in at a seasonally adjusted annual rate of 1,011,000.

Single-family home completions also rose to a seasonally adjusted annual average of 1,038,000, which is also a 3.3% month-over-month increase. However, single-family permits — a leading indicator of starts and completions — rose just 0.1% month-on-month to a seasonally adjusted annual average of 972,000.

Taken together, the markets in Florida are driving again after the October hurricanes, but the leading indicators point to slightly lower activity in the coming months. And the leading indicators are down year-over-year, with single-family permits (2.7%) and starts declining (10.2%).

“It is clear that there is a great demand and demand in the housing market, and a number of single-family properties are needed to meet that demand,” he said. Bright MLS Chief economist Lisa Sturtevant said in a statement. “The challenge for house builders is not on the demand side. Supply-side factors, including rising material and labor costs, and almost unlimited land for development, will be key constraints for homebuilders in the coming year.”

The new report comes as homebuilder confidence has plummeted. After three months of increased emotions, i National Association of Home Builders (NAHB)/Wells Fargo The Housing Market Index (HMI) in December remained flat compared to the previous month with a reading of 46.

The strong concept comes with corresponding changes for builders in the coming months. High home prices and forced high mortgage rates will conflict with any policy implemented by the incoming Trump administration.

While activists expect a favorable regulatory environment after the inauguration of the president, the benefits of that could be offset by broader economic factors, especially if Trump follows through on his threat of higher taxes and mass immigration deportations.

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