• Housing starts hit 1.56 million (SAAR) in November, up 14.8% from revised October 2023 figures and up 9.3% from November 2022, according to the U.S. Census Bureau. 
• Single family housing starts increased to 1.14 million (SAAR) in November, up 18% from October.
• Housing permits issued in November were down 2.5% from October and up 4.1% from a year ago, to 1.46 million (SAAR). 
• 1.45 million (SAAR) homes were completed in November, up 5% from October, but down 6.2% year-over-year.

What happened: Housing starts rose in November, significantly beating expectations. This follows a drop in mortgage rates which left home builders feeling optimistic about the new construction landscape in the months ahead. Permits are still down from a month ago, but up from last year. 

Why this matters: Home builders saw some renewed spirit in the market in November, with confidence rising from October lows, likely leading to the rise in housing starts. It is a good sign that builders are starting to ramp back up building activity with a market still in desperate need for more inventory. More homes are also leaving the new construction pipeline, with completions up in November giving buyers more options. This increased activity in new construction is vital for getting back on track for a more balanced market, and while permits might be down from last month, November was the first time in the last 14 months that housing permits were up annually. Mortgage rates have continued to float down in the early weeks of December, so this momentum should continue through year end, welcomed news for buyers who have been unlocked by affordability to enter the market once again.