Renter Nation? US Multi-Family Housing Starts & Permits Surge In August

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by Tyler Durden
Tuesday, Sep 21, 2021 - 08:40 AM

After an unexpectedly large plunge in July, Housing Starts were expected to rebound (very modestly) in August while July's small jump in Building Permits was expected to be erased by a drop in August. In reality, both Starts & Permits beat expectations handily.

  • Housing starts rose 3.9% MoM in August (vs +1.0% exp) and July's 7.0% drop was revised higher to 6.2% drop.

  • Building Permits soared 6.0% MoM in August (vs -1.8% exp) but July's 2.6% rise was revised lower to a 2.3% rise - the August jump is biggest since January.

Source: Bloomberg

Notably, single-family starts fell 2.8% to 1076k while multifamily starts soared 21.6% to 539k in August.

Stunningly, multi-family housing starts are up over 60% YoY...

The picture was the same in Permits where rental (multifamily) permits exploded 19.7% to 632K, an all time high; while single-unit permits were flat at 1.054MM

Total permits and starts SAARs are still well below post-COVID peaks however...

Source: Bloomberg

Is this 'good' news for The Fed meeting today and tomorrow? And therefore 'bad' news for markets?