Global| May 16 2014U.S. Housing Starts Strength Driven by Multi-family
by:Tom Moeller
|in:Economy in Brief
Summary
Housing starts in April gained 13.2% to 1.072 million (AR, 26.4% y/y) from 947,000 during March, revised from 946,000. The latest figure was the highest since November and easily beat expectations for 980,000 starts in the Action [...]
Housing starts in April gained 13.2% to 1.072 million (AR, 26.4% y/y) from 947,000 during March, revised from 946,000. The latest figure was the highest since November and easily beat expectations for 980,000 starts in the Action Economics Forecast Survey. Last month's increase was driven by a 39.6% rebound (64.6% y/y) in starts of multi-family homes to the highest level since January 2006. Starts of single-family homes nudged 0.8% higher (9.8% y/y) to 649,000, the highest level since December.
By region, starts in the Midwest gained 42.1% (40.3% y/y) to 216,000 while in the Northeast starts rose 28.7% (78.2% y/y) to 139,000. Starts in the West increased 11.1% (12.7% y/y) to 231,000 while starts in the South improved 1.5% (18.2% y/y) to 486,000.
Building permits increased 8.0% (3.8% y/y) to 1.080 million. Permits to build multi-family homes rebounded 19.5% (14.4% y/y) to 478,000, the highest level since June 2008. Single-family permits nudged 0.3% higher (-3.2% y/y) to 602,000, 6.7% below the November peak.
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) | Apr | Mar | Feb | Apr Y/Y % | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Total | 1,072 | 947 | 928 | 26.4 | 929 | 783 | 612 |
| Single-Family | 649 | 644 | 589 | 9.8 | 621 | 537 | 434 |
| Multi-Family | 423 | 303 | 339 | 64.6 | 308 | 247 | 178 |
| Starts By Region | |||||||
| Northeast | 139 | 108 | 87 | 78.2 | 96 | 80 | 68 |
| Midwest | 216 | 152 | 122 | 40.3 | 149 | 128 | 103 |
| South | 486 | 479 | 502 | 18.2 | 467 | 400 | 309 |
| West | 231 | 208 | 217 | 12.7 | 217 | 175 | 132 |
| Building Permits | 1,080 | 1,000 | 1,011 | 3.8 | 964 | 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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