Housing starts in October rose by 3.8 percent to a seasonally adjusted annual rate of 1,314,000, according to the latest data from the U.S. Census Bureau and Department of Housing and Urban Development.

After several months of gains, starts are up 8.5 percent year-over-year. Building permits for private homes rose by 5 percent to a seasonally adjusted rate of 1,461,000. Completions, meanwhile, rose 10.3 percent to a seasonally adjusted rate of 1,256,000.

“October’s housing starts were a robust rebound from last month and a sign that builders are optimistic about the direction of the housing market,” Zillow economist Matthew Speakman said in a statement. “Low mortgage rates have buoyed demand for homes, helping drive strong builder confidence despite a shortage of buildable lots and available labor.”

Census Bureau

Building permits, housing starts and completions are all up both monthly and year-over-year. Permits, in particular, rose the most — they are now 14.1 percent higher than the October 2018 rate of 1,281,000. Authorizations for single‐family homes are at a rate of 909,000 while permits for units in buildings with five units stood at 505,000 in October.

While it is too early to tell whether this burst of housing activity will last into the new year, Speakman said October’s numbers show that builders are aware of the current inventory shortage and are starting to take action.

“Builders continue to add homes at a healthy rate, doing what they can to address an inventory shortage that is holding back the housing market,” Speakman said. “Permits for future building were also above expectations, another indication that new home building has plenty of legs as we face into winter.”

Email Veronika Bondarenko

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×