Global| Jan 18 2018U.S. Housing Starts Decline Sharply
by:Tom Moeller
|in:Economy in Brief
Summary
Total housing starts fell 8.2% (-6.0% y/y) during December to 1.192 million from 1.299 million in November, revised from 1.297 million. A level of 1.275 million starts had been expected in the Action Economic Forecast Survey. During [...]
Total housing starts fell 8.2% (-6.0% y/y) during December to 1.192 million from 1.299 million in November, revised from 1.297 million. A level of 1.275 million starts had been expected in the Action Economic Forecast Survey. During all of 2017, housing starts increased 2.4% to 1.202 million, the highest level in ten years.
Starts of single-family homes declined 11.8% (+3.5% y/y) to 836,000. During all of last year, single-family starts gained 8.5% to 848,000. Multi-family starts improved 1.4% (-22.6% y/y) to 356,000 and totaled 354,000 last year, down 9.8% y/y.
Movement in starts last month varied greatly around the country. Starts in the South declined 14.2% to 582,000 following two months of increase. Starts in the Northeast fell by 4.3% to 88,000, the lowest level since May. In the Midwest, starts eased 2.2% to 178,000, the lowest level in four months. Housing starts in the West eased 0.9% to 344,000.
Building permits eased 0.1% (+2.8% y/y) to 1.302 million after a 1.0% November decline. Single-family permits rose 1.8% (6.1% y/y) to 881,000. Permits to build multi-family homes fell 3.9% (-3.4% y/y) to 421,000, after falling 6.0%.
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) | Dec | Nov | Oct | Dec Y/Y % | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|
| Total | 1,192 | 1,299 | 1,261 | -6.0 | 1,202 | 1,174 | 1,112 |
| Single-Family | 836 | 948 | 887 | 3.5 | 848 | 782 | 715 |
| Multi-Family | 356 | 351 | 374 | -22.6 | 354 | 392 | 397 |
| Starts By Region | |||||||
| Northeast | 88 | 92 | 145 | -1.1 | 111 | 116 | 138 |
| Midwest | 178 | 192 | 200 | -19.8 | 180 | 182 | 153 |
| South | 582 | 678 | 613 | 2.8 | 598 | 585 | 556 |
| West | 344 | 347 | 303 | -12.0 | 312 | 291 | 265 |
| Building Permits | 1,302 | 1,303 | 1,316 | 2.8 | 1,258 | 1,207 | 1,178 |
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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