U.S. housing starts likely to have fallen again in September, construction to stay weak

Housing starts in the U.S. had dropped in the month of August amid additional softness in the multi-family segment. However, single family starts had continued with their upward trend and have risen almost 9 percent year-to-date.

According to a Wells Fargo research report, housing starts are likely to have dropped a bit in September to a 1.17 million annualized rate after hurricanes Harvey and Irma hit Texas and Florida, which are two of the largest and most rapidly growing housing markets in 2017.

Low mortgage rates and solid permitting activity, especially in the multifamily segment where permits rose 20 percent last month implies that the damage would be comparatively contained in September. However, overall new construction is expected to stay weak between now and the end of the year, as repair efforts divert labor and materials and delay new construction, added Wells Fargo.

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