US new residential building activity expected to expand

Buoyed by unusually warm and dry weather conditions in the continental US, the number of new housing units started probably climbed by 1.2% to an eight-year high seasonally adjusted annual rate of 1.22 million units in October. Consistent with the reported improvement in home-builders' assessments of market conditions, the number of single-family homes started is expected to expand by 15K units to 755K - the strongest activity since July. Meanwhile, the number of multifamily units started is forecast to have been little changed at 465K, after the apartment building-led 18.3% leap posted in September. 

"Our projection would place October's housing starts level a whopping 21% annualized above the July-September average, after a comparative modest 2.0% Q3 gain", says Societe Generale.

Adding to the positive tone of the Census Bureau's report, a projected jump in multifamily issuance probably propelled the number of building permits issued 5.9% higher to 1.17 million - the highest level since June.