US single-family homebuilding reached a 1-1/2-year high in November, with single-family home permits reaching a record high since May 2022.

The rise is likely due to a scarcity of housing units relative to demand, with the Census Bureau reporting an 18.0% increase in single-family housing starts.

The Federal Reserve maintained interest rates unchanged and suggested lower borrowing costs in 2024.

Single-family builders’ confidence rose from an 11-month low in December, and construction permits rose 0.7% to 976,000 in November.

The third-quarter economy rose 5.2%, but moderate consumer spending, inventories, and a larger trade imbalance may hamper GDP growth.

Housing project starts surged 8.9% to 404,000, and the rental vacancy rate reached a two-year high, indicating cooling demand.