Severe snow storms just after Christmas dealt another setback to new housing activity last month Total housing starts fell 4.3% in December to 529,000 (AR) units from 553,000 during November, initially reported at 555,000. The latest figure fell short of Consensus expectations for 550,000 starts. For the year as a whole, starts nevertheless grew 5.8% from 2009 following a three-quarters decline since the early-2006 peak.

The December decline reflected a 9.0% decline in starts of single-family homes to 417,000. The latest was the lowest level since May of 2009. Starts of multi-unit units increased a minimal 17.9% to 112,000 but remained down by one-quarter from three months ago. Starts of 2-to-4 unit structures, which are few in number, fell by one quarter m/m but starts with more than five units increased by one-quarter from the lowest level since February. Starts in the Midwest fell more than one-third m/m (-26.6% y/y) during December and starts in the Northeast fell one-quarter from November (-4.9% y/y). Starts in the South fell a minimal 2.2% (-16.0% y/y) but starts out West increased one-third m/m and by one-third y/y.

Working the other way, building permits rose 16.7% m/m (-6.8% y/y) to the highest level since March. Permits for single-family units rose 5.5% but remained down 14.9% from last December. Multi-family permits rose more than one-half m/m (18.9% y/y).

The housing starts figures can be found in Haver's USECON database.

Baby Boomers Face a Changing Retirement Landscape from the Federal Reserve Bank of Dallas is available here.