Global| Jan 21 2015U.S. Housing Starts Reach Highest Level Since 2007; Multi-Family Reach 1989 High
by:Tom Moeller
|in:Economy in Brief
Summary
Housing starts during all of last year totaled 1.006 million, the highest level since 2007. The 8.0% gain followed double-digit increases during the prior two years. Starts during December rose 4.4% to 1.089 million (AR, 5.3% y/y) [...]
Housing starts during all of last year totaled 1.006 million, the highest level since 2007. The 8.0% gain followed double-digit increases during the prior two years. Starts during December rose 4.4% to 1.089 million (AR, 5.3% y/y) from 1.043 million in November, revised from 1.028 million. The latest figure beat expectations for 1.040 million starts in the Action Economics Forecast Survey.
Starts in the single-family sector improved 4.1% last year to 647,000 units following two years of double-digit gain. Last month, starts rose 7.2% (7.9% y/y) to 728,000 and made up a 5.2% drop during November. Notably firm were starts in the multi-family sector which increased 15.6% last year to 357,000, the highest level since 1989. Starts during December slipped 0.8% (+0.6% y/y) to 361,000.
Regionally, starts improved 14.6% last year in the Northeast, the third straight year of double-digit rise. Starts gained 12.5% in December to 126,000 (51.8% y/y). In the West, starts improved 8.6% to 235,000 following two years of double-digit rise. During December, starts rose 5.8% to 292,000 (3.5% y/y). Starts in the Midwest increased 6.8% last year to 159,000, the gain also followed two years of double-digit improvement. In December, starts declined 13.3% to 163,000. Starts in the South improved 6.7% last year to 498,000, also following two years of double-digit rise. Last month, starts gained 8.8% to 508,000 (-1.2% y/y).
Permits to build new homes increased 3.1% last year to 1,022 million. During December permits fell 1.9% (+1.0% y/y). Permits to build single-family homes increased 0.6% in 2014 and rose 4.5% in December (8.1% y/y). Multi-family permits gained 7.5% in 2014 but fell 11.8% last month (-9.9% y/y).
The housing starts 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 % | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|
| Total | 1,089 | 1,043 | 1,092 | 5.3 | 1,006 | 925 | 781 |
| Single-Family | 728 | 679 | 716 | 7.9 | 647 | 618 | 535 |
| Multi-Family | 361 | 364 | 376 | 0.6 | 357 | 307 | 245 |
| Starts By Region | |||||||
| Northeast | 126 | 112 | 99 | 51.8 | 111 | 97 | 80 |
| Midwest | 163 | 188 | 165 | 5.2 | 159 | 150 | 128 |
| South | 508 | 467 | 506 | -1.2 | 498 | 464 | 398 |
| West | 292 | 276 | 222 | 3.5 | 235 | 215 | 175 |
| Building Permits | 1,032 | 1,052 | 1,092 | 1.0 | 1,022 | 991 | 830 |
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.
