Building permits in the United States experienced a remarkable 6.1% increase in November 2024, reaching a seasonally adjusted annualized rate of 1.505 million. This significant rise not only erased the 0.4% decline from October but also exceeded market expectations of 1.43 million permits. It marks the sharpest monthly increase since February 2023 and elevates permits to their highest level since February 2024, signaling strong momentum in the housing sector.

Multi-Unit Permits Drive the Growth

The surge was largely driven by permits for buildings with five or more units, which jumped by an impressive 22.1%, reaching an annualized rate of 481 thousand. Meanwhile, single-family permits saw a modest increase of 0.1%, climbing to 972 thousand. These gains were enough to offset a 3.7% decline in permits for buildings with two to four units, which totaled 52 thousand for the month.

Regional Breakdown of Permit Growth

Permit growth was observed across all regions of the United States, with the Northeast leading the charge with an 11.3% increase to 158 thousand permits. The Midwest followed closely with a 10.7% rise to 217 thousand, while the South saw a 5.7% increase to 798 thousand permits. The West experienced a more modest gain of 1.8%, bringing its total to 332 thousand permits.

Strong Momentum Ahead

The robust growth in building permits reflects increasing confidence in the housing market, especially for multi-unit developments. As demand for housing continues to evolve, the rise in permits suggests positive trends for future construction activity and broader economic resilience in the real estate sector.