New markets require new approaches and tactics. Experts and industry leaders take the stage at Inman Connect New York in January to help navigate the market shift — and prepare for the next one. Meet the moment and join us. Register here.

Housing starts, permits and completions all posted declines in December with increased production of single-family homes the lone bright spot for the month, according to data released Thursday by the U.S. Census Bureau.

Housing starts clocked in at a seasonally adjusted annual rate of 1,382,000, according to the census bureau, 1.4 percent below the levels recorded in November and 21.8 percent below the numbers seen in December 2021. An estimated 1,553,300 housing units were started in 2022, the report said, 3 percent lower than the 2021 rate of 1,601,000.

Housing starts for single-family homes proved to be a bright spot, increasing by 11.3 percent from November while multifamily starts decreased by 19 percent to a pace of 473,000.

The amount of new housing units authorized by building permits fell 1.6 percent to a seasonally adjusted annual rate of 1,330,000, which was 29.9 percent below the December 2021 rate of 1,896,000. Throughout all of 2022, an estimated 1,649,400 housing units were authorized by building permits, 5 percent below their 2021 levels.

Housing completions in December were at an annual rate of 1,411,000 8.4 percent below the November estimate of 1,540,000, but 6.4 percent above their December 2021 levels. 2022 saw an estimated  1,392,300 housing units completed, 3.8 percent above the 2021 figure of 1,341,000 according to the Census Bureau.

Despite the promising increase in single-family home production, some experts expected the slowdown in production to last through 2023.

“Even though single-family starts are up on a monthly basis, permits indicate that the housing market will slow down further in 2023,” Jerry Konter, chairman of the National Association of Home Builders said in a statement. “We expect a sustainable decline for mortgage rates in the second half of this year, which should lead to a housing recovery in 2024.”

NAHB officials pointed to the decline in permitting as evidence that a further drop in housing starts is on the horizon, as builders respond to declining housing demand due to high mortgage interest rates.

“The decline in single-family permits indicates that builders are slowing construction activity as interest rates have spiked in recent months,” Danushka Nanayakkara-Skillington, NAHB’s assistant vice president for forecasting and analysis said in a statement.“Starts began on a strong footing in early 2022 but fell back in the latter part of the year as higher costs led to a pause in home building activity and affordability conditions worsened for home buyers.”

Email Ben Verde

Show Comments Hide Comments

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
×