U.S. Housing Permits Slowly Recovering in 2023
What's Driving the Unexpected Rise in Construction?
New housing permits issued in the U.S. showed a continued slow increase from a low point at the beginning of 2023, but remain well below the number being issued a year ago, according to figures from the St. Louis Federal Reserve (compiled by the U.S. Census Bureau).
The number of building permits issued for all housing units dropped last year as mortgage interest rates rose rapidly. So far in 2023, the housing permit numbers have risen slightly. But they are still 18% below a recent June 2022 high.
New building permits issued are a measure of future new construction in the short term and reflect demand for new homes in a market where only some existing homeowners are selling so existing for-sale home inventory is low by historical standards. New home construction is a leading factor in demand for construction and other lumber.