Instant Reaction: September Housing Starts

The following is NAR Chief Economist Lawrence Yun’s reaction to the U.S. Commerce Department release on September housing starts:

“The one month fall in new home construction, especially in the South region in light of Hurricane recovery, is understandable. What is frustrating and hard to comprehend is the drop in total permits in the West region. Home prices have been rising too fast in the West, and several metro areas are in dire need of new home construction. If housing shortages continue, along with the commensurate affordability challenges, then expect new job creation to begin shifting away from the West to other parts of the country.”