US housing supply is set to get even worse: Building permits fell -3.7% MoM in August, to an annualized pace of 1.3 million, the lowest since May 2020. Building permits are approvals for new residential construction and serve as a leading indicator of future housing supply. This marks the 5th consecutive monthly decline, the longest streak since the 2008 Financial Crisis. Over this period, permits have dropped -11.4%. This signals fewer new homes will be built, tightening supply further, all as demand is rebounding due to rate cuts. Housing is set to become even less affordable.(The Kobeissi Letter)