‘Renter Nation’ Returns: Trump Victory Sparks Massive Surge In Multi-Family Unit Starts In December
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‘Renter Nation’ Returns: Trump Victory Sparks Massive Surge In Multi-Family Unit Starts In December
From a downwardly revised 3.7% MoM drop in November, Housing Starts exploded 15.8% higher MoM in December while Building Permits (more forward looking) fell 0.7% MoM (a smaller decline than expected)…
Source: Bloomberg
That is the biggest MoM jump in Starts since March 2021, dragging the total Starts SAAR to its highest since Feb 2024…
Source: Bloomberg
The dramatic surge in starts was driven by a ridiculous 58.9% MoM jump in multi-family units (while multi-family permits fell 5.8%).
Source: Bloomberg
This is the biggest MoM jump in multi-family starts since 2016, and the highest SAAR for ‘renter nation’ since Dec 2023…
Source: Bloomberg
The question is – with sales expectatins falling, will homebuilders keep building at this pace…
Source: Bloomberg
Despite the robust monthly advance, new home construction for all of 2024 was the slowest since 2019.
With mortgage rates now back above 7.00%, perhaps the homebuilders are betting on a return of inflation and growth meaning home-buying affordability will remain out of reach for most Americans.
However, we do note that the more forward-looking ‘permits’ headline data actually declined MoM.
Tyler Durden
Fri, 01/17/2025 – 08:50