Government data indicates that the housing starts in November increased from 1.36 million units to 1.56 million units. If the starts remain at the same rate as in November each month, over 18 million homes will be constructed in a year.

This data exceeded Wall Street's expectations, as the market anticipated housing starts to be at 1.36 million units. This suggests that, despite the supply shortage, homebuyer demand remains strong, prompting builders to accelerate construction. It is noteworthy that both single-family homes and multi-family buildings experienced growth in November, with the construction pace of single-family homes rising by 18% and apartments by 8.9%.

The data reveals that builders in the Northeast increased construction efforts in November, doubling the overall housing starts in the region. The increases in other regions were relatively modest, with only a slight decline of 0.8% in the single-family home starts in the Western region.

In addition, the latest survey of builders in December indicates increased optimism regarding homebuyer demand. Despite the need for builders to continue lowering prices in November to maintain buyer interest, the decline in mortgage rates in mid-December is expected to further boost starts and sales of new homes in the coming months.

However, it is important to note that building permits, a sign of future construction, declined by 2.5% in November, reaching 1.46 million. This may indicate a potential limitation on future starts in the coming months.

Overall, the significant growth in housing starts in November reflects strong homebuyer demand. Furthermore, the decline in mortgage rates in mid-December may further drive future starts and new home sales. With housing loans becoming more affordable, hesitant buyers may view this as an opportune time to purchase a home.

Nevertheless, an analyst pointed out that the data for November might be an anomaly, and there could be a correction in the future. The housing starts have been unstable in the past few months, and the existing home supply in the market remains extremely low, even with increasing demand. Therefore, builders need to carefully assess market demand and adjust their construction plans accordingly based on actual conditions.