Global| Jan 17 2014U.S. Housing Starts In 2013 Are Highest Since 2007
by:Tom Moeller
|in:Economy in Brief
Summary
It was a good year for new home builders in 2013. Housing starts of 928,000 were up 18.4% versus 2012 following that year's 28.0% rise. It was the highest level of starts since 2007. During December, however, starts backpedaled 9.8% [...]
It was a good year for new home builders in 2013. Housing starts of 928,000 were up 18.4% versus 2012 following that year's 28.0% rise. It was the highest level of starts since 2007. During December, however, starts backpedaled 9.8% m/m (+1.6% y/y) to 999,000 (AR) after a nearly one-third m/m increase in November. The latest level topped expectations for 985,000 starts in the Action Economics survey. Starts of single-family homes gained 15.8% last year to 621,000 but then fell 7.0% (+7.6% y/y) last month to 667,000. Starts of multi-family homes advanced by nearly one quarter last year to 306,000 then pulled back 14.9% (-8.5% y/y) to 332,000 last month.
By region, starts in the West showed the greatest strength last year with a 24.2% rise to 217,000 units. In December, starts then gained 15.0% (26.3% y/y) to a new high of 269,000. Starts in the Northeast followed with a 20.2% annual increase to 97,000 then were unchanged m/m (-21.7% y/y) at 90,000 in December. Starts in the South increased 16.3% last year to 465,000 before falling 12.3% (+6.0% y/y) last month to 493,000. The Midwest wasn't far behind last year as it posted a 16.0% annual increase to 149,000, but starts fell by one third m/m (-22.6% y/y) in December to 147,000.
Building permits increased 16.2% last year to 963,000 then declined 3.0% last month to 986,000 (+4.6% y/y). Permits to build single-family homes gained 18.2% last year to 614,000 (18.2% y/y) then slipped 4.8% m/m (+4.5% y/y) to 610,000. Permits to build multi-family units increased 12.9% to 349,000 and were unchanged m/m (+4.7% y/y).
The housing starts figures can be found in Haver's USECON database. The expectations figure is contained in the AS1REPNA database.
The Fed's latest Beige Book covering regional economic conditions can be found here.
| Housing Starts (000s, SAAR) | Dec | Nov | Oct | Dec Y/Y% | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Total | 999 | 1,107 | 899 | 1.6 | 928 | 783 | 612 |
| Single-Family | 667 | 717 | 600 | 7.6 | 621 | 537 | 434 |
| Multi-Family | 332 | 390 | 299 | -8.5 | 306 | 247 | 178 |
| Starts By Region | |||||||
| Northeast | 90 | 90 | 119 | -21.7 | 97 | 80 | 68 |
| Midwest | 147 | 221 | 162 | -22.6 | 149 | 128 | 103 |
| South | 493 | 562 | 406 | 6.0 | 465 | 400 | 309 |
| West | 269 | 234 | 212 | 26.3 | 217 | 175 | 132 |
| Building Permits | 986 | 1,017 | 1,039 | 4.6 | 963 | 829 | 624 |
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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