The following is NAR Chief Economist Lawrence Yun’s reaction to today’s U.S. Commerce Department report on November housing starts:
“There’s little to cheer about regarding residential construction in November.
The fall in single-family housing starts offers zero relief to the housing inventory shortage throughout the country. Moreover, the collapse in multifamily starts assures continued robust growth in rents next year. Housing costs are rising and this trend will nudge up the broad consumer price inflation enough to surpass 3 percent next year, which is easily above the Federal Reserve’s desired inflation target. The soft housing starts also assures continued sluggish expansion in the overall economy.”