Steel Products
Housing Starts Decline in August
Written by Becca Moczygemba
September 19, 2023
US housing starts slipped in August, according to the latest estimates from the US Census Bureau.
The total privately owned housing starts were at a seasonally adjusted annual rate of (SAAR) of 1,283,000 in August, Census said. August starts are down 11.3% from the revised July estimate of 1,447,000. Year over year, single-family housing starts are down 14.8% from 1,505,000 in August 2022.
Higher mortgage rates and higher construction costs have slowed single-family housing production, the National Association of Home Builders (NAHB) said.
“High mortgage rates above 7% combined with low resale inventory and higher home prices are slowing housing production, as many first-time home buyers and younger households are struggling to purchase an affordable home,” Alicia Huey, NAHB chairman, said in a statement.
Huey added that there’s currently a nationwide shortage of 1.5 million units in addition to elevated mortgage rates. “We need to increase the housing supply to get this market back into balance to meet the pent-up demand for when market conditions improve,” she said.
NAHB anticipates that mortgage rates will remain elevated. The association expects the Federal Reserve to increase rates one more time later this quarter, according to Danushka Nanayakkara-Skillington, NAHB’s assistant VP for forecasting and analysis.
Regionally, combined single-family and multi-family starts are down in all four regions, with the largest decline being the Northeast and the lowest in the South.
Becca Moczygemba
Read more from Becca MoczygembaLatest in Steel Products
Rig count update: US activity stable, Canada slips
The number of oil and gas rigs operating in the US remained unchanged this week for the second consecutive week, while Canadian activity declined, according to the latest data released from Baker Hughes.
SMU market survey results now available
SMU’s latest steel buyers market survey results are now available on our website to all premium members. After logging in at steelmarketupdate.com, visit the pricing and analysis tab and look under the “survey results” section for “latest survey results.” Past survey results are also available under that selection. If you need help accessing the survey results, or if […]
Domestic, offshore CRC prices steady
The price spread between US-produced cold-rolled (CR) coil and offshore products on a landed basis was unchanged in the week ended Dec. 20.
SMU Survey: Mill lead times contract slightly, remain short
Steel mill production times have seen very little change since September, according to buyers participating in our latest market survey.
Worthington Enterprises’ earnings dip in fiscal Q2’25
Worthington Enterprises' profits edged down in its fiscal second quarter of 205 vs. a year earlier. The company said a slump in sales in the quarter was due largely to the "deconsolidation" of the Sustainable Energy Solutions segment in the fourth quarter of fiscal 2024.