Global| Jan 21 2021U.S. Housing Starts Rise Again in December
by:Tom Moeller
|in:Economy in Brief
Summary
• Total starts reach highest level since September 2006. • Single-family housing starts continue to surge. • Building permits strengthen. Record low interest rates continue to strengthen new home building. Housing starts increased [...]
• Total starts reach highest level since September 2006.
• Single-family housing starts continue to surge.
• Building permits strengthen.
Record low interest rates continue to strengthen new home building. Housing starts increased 5.8% (5.2% y/y) during December to 1.669 million (AR) from 1.578 million in November, revised from 1.547 million. October's level was revised to 1.530 million from 1.528 million. The Action Economics Forecast Survey expected 1.560 million starts in December.
Starts of single-family homes increased 12.0% (27.8% y/y) to 1.338 million from 1.195 in November, revised from 1.186 million. Offsetting this increase was a 13.6% decline (-38.7% y/y) in multi-family starts to 331,000 from 383,000 in November, revised from 361,000.
Building permits rose 4.5% (17.3% y/y) to 1.709 million last month after November's rise to 1.635 million, revised from 1.639 million. It was the highest level of permits since August 2006. Permits to build single-family homes rose 7.8% (30.4% y/y) to 1.226 million following a 0.8% November gain. Permits to build multi-family homes eased 3.0% (-6.6% y/y) to 483,000 after rising 19.7% in November to 498,000.
By region, housing starts in the Northeast declined 34.8% (-24.1% y/y) to 107,000 and reversed most of November's increase. In the West, starts improved 10.2% (10.0% y/y) to 453,000, up for the sixth straight month. In the South, starts improved 5.5% (7.8% y/y) to 858,000 following November's 4.6% decline. Housing starts in the Midwest jumped 32.1% (5.5% y/y) to 251,000 following a 9.1% November decline.
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 % | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|
| Total | 1,669 | 1,578 | 1,530 | 5.2 | 1,397 | 1,295 | 1,248 |
| Single-Family | 1,338 | 1,195 | 1,179 | 27.8 | 1,062 | 893 | 872 |
| Multi-Family | 331 | 383 | 351 | -38.7 | 395 | 403 | 376 |
| Starts By Region | |||||||
| Northeast | 107 | 164 | 84 | -24.1 | 113 | 115 | 111 |
| Midwest | 251 | 190 | 209 | 5.5 | 194 | 170 | 170 |
| South | 858 | 813 | 852 | 7.8 | 743 | 689 | 630 |
| West | 453 | 411 | 385 | 10.0 | 348 | 322 | 337 |
| Building Permits | 1,709 | 1,635 | 1,544 | 17.3 | 1,439 | 1,386 | 1,329 |
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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