U.S. Single-family Housing Starts Improve; Total Led Lower By Multi-family

Despite record cold temperatures, starts of single-family homes inched up 0.8% last month to 613,000 (20.0% y/y), the highest level since July 2008. Total housing starts of 890,000 in January, however, were off 8.5% (+23.6% y/y) due to a 24.1% decline (+32.5% y/y) in starts of multi-family homes. Consensus expectations were for a rise in total starts to 920,000. December's level was revised to 973,000 from 954,000 reported last month.

By region, starts in the Midwest fell by one-half m/m (-10.4% y/y) to 95,000 led lower by a collapse in multi-family starts to 2,000 (-91.7% y/y) from 87,000 in December. Single-family starts in the Midwest fell a lesser 9.7% (+13.4% y/y). Also crippled by heavy snows were starts in the Northeast where multi-family starts fell 59.0% (-16.7% y/y). Starts of single-family homes fell a lesser 9.1% (+13.6% y/y). In the South, total starts rose 4.1% (19.9% y/y) to 483,000 and in the West, starts rose 16.7% (73.0% y/y).

Building permits in January rose 1.8% (35.2% y/y) to 925,000. Permits for single-family homes advanced 1.9% last month (29.2% y/y). Multi-family permits increased 1.5% m/m but were up nearly one-half y/y.

The housing starts figures can be found in Haver's USECON database. The expectations figure is contained in the AS1REPNA database. 

Why Did Young Families Lose So Much Wealth During the Crisis? The Role of Homeownership from the Federal Reserve Bank of St. Louis can be found here here.