Housing starts missed badly in August—down 2.6% when the street expected +6.7%. The real story? Multifamily construction fell off a cliff, down 22% month-over-month.
This isn't just a data point. It's a signal. Multifamily has been overbuilt in many metros, financing costs are brutal, and developers are pulling back hard. Single-family held up better, but the overall weakness tells you something about where builders think demand is heading.
When construction slows, it ripples—materials, labor, lending, eventually rents and home prices. Watch what people do with their capital, not what they say about the economy.
This isn't just a data point. It's a signal. Multifamily has been overbuilt in many metros, financing costs are brutal, and developers are pulling back hard. Single-family held up better, but the overall weakness tells you something about where builders think demand is heading.
When construction slows, it ripples—materials, labor, lending, eventually rents and home prices. Watch what people do with their capital, not what they say about the economy.
