US housing starts fell 5.2% in September to 1.22 million, second-lowest since May 2020

Housing starts dropped 5.2% month over month in September to an annualized rate of 1.22 million. That is the second-lowest reading since May 2020. Single-family starts fell 4.6% to 859,000. Multifamily fell 7.2% to 349,000. Higher mortgage rates and worsening affordability are weighing on demand. Elevated inventories and falling homebuilder confidence are discouraging new construction.