Global| Mar 18 2020U.S. Housing Starts & Building Permits Ease in February
by:Tom Moeller
|in:Economy in Brief
Summary
Housing starts fell 1.5% (+39.2% y/y) during February to 1.599 million units (SAAR) from 1.624 million in January, revised from 1.567 million. Starts in December were revised down to 1.601 million from 1.626 million. The Action [...]
Housing starts fell 1.5% (+39.2% y/y) during February to 1.599 million units (SAAR) from 1.624 million in January, revised from 1.567 million. Starts in December were revised down to 1.601 million from 1.626 million. The Action Economics Forecast Survey expected 1.500 million starts.
Starts of single-family starts increased 6.7% (35.4% y/y) to 1.072 million, a new high for the economic expansion. This m/m strength was offset last month, however, by a 14.9% decline (+47.6% y/y) in multi-family starts to 527,000.
By region, last month's weakness in starts was led by a 41.4% decline (+41.6% y/y) in the Northeast to 126,000. It reversed the prior month's 51.4% jump. Starts in the West weakened by 18.2% (+49.0% y/y) to 374,000 and also more than reversed January's increase. Offsetting these declines was a 16.7% (32.1% y/y) to 210,000 starts in the Midwest. It made up most of the prior month's decline. In the South, starts increased 15.2% (36.8%y/y) to 889,000, the highest level since September 2006.
Building permits fell 5.5% (+13.8% y/y) to 1.464 million units from 1.550 million in January. Permits to build single-family homes increased 1.7% (+23.3% y/y) to 1.004 million, the highest level since May 2007, but the gain was countered by an 18.3% decline (-2.7% y/y) in multi-family permits to 460,000.
The housing starts and permits figures can be found in Haver's USECON database. The expectations figure is contained in the AS1REPNA database.
| Housing Starts (000s, SAAR) | Feb | Jan | Dec | Feb Y/Y % | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|
| Total | 1,599 | 1,624 | 1,601 | 39.2 | 1,298 | 1,250 | 1,209 |
| Single-Family | 1,072 | 1,005 | 1,057 | 35.4 | 894 | 873 | 852 |
| Multi-Family | 527 | 619 | 544 | 47.6 | 404 | 377 | 357 |
| Starts By Region | |||||||
| Northeast | 126 | 215 | 142 | 41.6 | 116 | 111 | 111 |
| Midwest | 210 | 180 | 238 | 32.1 | 170 | 171 | 181 |
| South | 889 | 772 | 807 | 36.8 | 689 | 631 | 603 |
| West | 374 | 457 | 414 | 49.0 | 323 | 337 | 314 |
| Building Permits | 1,464 | 1,550 | 1,420 | 13.8 | 1,464 | 1,330 | 1,286 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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