Construction of new homes in U.S. dropped in January
Housing Starts U.S. Economic Indicators
Housing starts fell again after recent increases, following very solid December report.
The Department of Housing and Urban Development reported the housing starts in U.S. deteriorated in January by -2.5 % on the seasonally adjusted basis to annual rate of 1,567,000 units, a decrease of 41,000 units from 1,608,000 in December. The construction of single-family fell by -4.3% to annual rate of 1,010,000 units. The increase in rental demand led to higher construction of apartments, accounting for 35.55 % of total housing starts.
A healthier housing market, however, would give a big boost to the economy. From Jan. 2019, housing starts jumped by 23.1 %, as housing starts in the West 45.6 % led the increase, this is the main reason why some economists are optimistic about the housing market, despite the recent slowdown.
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Building permits have rebounded from decline in previous period, permits soared by 9.5 % or 135,000 units to an annual rate of 1,567,000 units, from 1,608,000 in December on the seasonally adjusted basis Most of growth took place in the Northeast and it was concentrated in multi-dwelling buildings such as apartments.
New permits went up 36.6 % to annual rate of 431,000 units in the Northeast while permits for multi-family units grew 12.8 % accounting for 35.55 % of total permits issued.
Permits give an indication of whether demand for new homes is growing or slowing. Compare to a year ago monthly building permits soared by 17.8 %
|
| Permits By Region |
- In Northeast
housing units were authorized at seasonally adjusted annual rate of 183,000
units, an
increase of 49,000
units,
or 36.57 % from 134,000
units Dec. 2019 and an
increase of 35.56 % from 135,000
units Jan. 2019.
- In
Midwest housing units were authorized at seasonally
adjusted annual rate of 225,000
units, an
increase of
18,000
units,
or
8.70 % from 207,000
units Dec. 2019 and an
increase of
20.97 % from 186,000
units Jan. 2019.
- In
West housing units were authorized at seasonally adjusted
annual rate of 398,000
units, an
increase of
11,000
units,
or
2.84 % from 387,000
units Dec. 2019 and an
increase of
17.40 % from 339,000
units Jan. 2019.
|
- In
South housing units were authorized at seasonally adjusted annual rate of 745,000
units, an
increase of 57,000
units,
or 8.28 % from 688,000
units Dec. 2019 and an
increase of 13.39 % from 657,000
units Jan. 2019.
|
New Housing Units Authorized
(Seasonally adj., at Annual Rate, units), units) |
Jan. 2020
prel. |
Dec. 2019
prel. |
Nov. 2019
prel. |
Oct. 2019
prel. |
Sep. 2019
prel. |
| Total |
|
1,551,000 |
1,416,000 |
1,474,000 |
1,461,000 |
1,387,000 |
| In structures Single-family units |
|
987,000 |
916,000 |
921,000 |
911,000 |
882,000 |
| In structures with 2 - 4 units |
|
42,000 |
42,000 |
38,000 |
48,000 |
35,000 |
| In structures with 5 units or more |
|
522,000 |
458,000 |
515,000 |
502,000 |
470,000 |
| Northeast |
|
183,000 |
134,000 |
159,000 |
138,000 |
113,000 |
| Midwest |
|
225,000 |
207,000 |
206,000 |
179,000 |
176,000 |
| South |
|
745,000 |
688,000 |
736,000 |
773,000 |
732,000 |
| West |
|
398,000 |
387,000 |
373,000 |
371,000 |
366,000 |
New Housing Units Authorized
(Seasonally adj., at Annual Rate, units), in M / M) |
Jan. 2020
prel. |
Dec. 2019
prel. |
Nov. 2019
prel. |
Oct. 2019
prel. |
Sep. 2019
prel. |
| Total |
9.53 % |
-3.93 % |
0.89 % |
5.34 % |
-2.26 % |
| In structures Single-family units |
7.75 % |
-0.54 % |
1.1 % |
3.29 % |
1.85 % |
| In structures with 2 - 4 units |
0 % |
10.53 % |
-20.83 % |
37.14 % |
-20.45 % |
| In structures with 5 units
or more |
13.97 % |
-11.07 % |
2.59 % |
6.81 % |
-7.66 % |
| Northeast |
36.57 % |
-15.72 % |
15.22 % |
22.12 % |
-25.17 % |
| Midwest |
8.7 % |
0.49 % |
15.08 % |
1.7 % |
-6.88 % |
| South |
8.28 % |
-6.52 % |
-4.79 % |
5.6 % |
-2.14 % |
| West |
2.84 % |
3.75 % |
0.54 % |
1.37 % |
10.57 % |
New Housing Units Authorized
(Seasonally adj., at Annual Rate, units), in % Y/Y) |
Jan. 2020
prel. |
Dec. 2019
prel. |
Nov. 2019
prel. |
Oct. 2019
prel. |
Sep. 2019
prel. |
| Total |
17.77 % |
6.79 % |
10.99 % |
15.68 % |
11.76 % |
| In structures Single-family units |
20.22 % |
10.49 % |
8.61 % |
7.3 % |
3.64 % |
| In structures with 2 - 4 units |
-4.55 % |
13.51 % |
-2.56 % |
26.32 % |
-10.26 % |
| In structures with 5 units
or more |
15.49 % |
-0.43 % |
16.78 % |
33.51 % |
33.9 % |
| Northeast |
35.56 % |
21.82 % |
32.5 % |
20 % |
22.83 % |
| Midwest |
20.97 % |
42.76 % |
16.38 % |
-4.28 % |
14.29 % |
| South |
13.39 % |
0 % |
3.95 % |
19.29 % |
11.93 % |
| West |
17.4 % |
1.04 % |
15.48 % |
18.53 % |
7.33 % |
New Housing Units Started
(Seasonally adj., at Annual Rate, units) |
Jan. 2020
prel. |
Dec. 2019
prel. |
Nov. 2019
prel. |
Oct. 2019
prel. |
Sep. 2019
prel. |
| Total |
|
1,567,000 |
1,608,000 |
1,375,000 |
1,340,000 |
1,256,000 |
| In structures Single-family units |
|
1,010,000 |
1,055,000 |
949,000 |
914,000 |
918,000 |
| In structures with 2 - 4 units |
|
10,000 |
17,000 |
20,000 |
12,000 |
11,000 |
| In structures with 5 units or more |
|
547,000 |
536,000 |
406,000 |
414,000 |
327,000 |
| Northeast |
|
178,000 |
133,000 |
106,000 |
115,000 |
109,000 |
| Midwest |
|
180,000 |
254,000 |
185,000 |
179,000 |
167,000 |
| South |
|
778,000 |
810,000 |
741,000 |
692,000 |
676,000 |
| West |
|
431,000 |
411,000 |
343,000 |
354,000 |
304,000 |
New Housing Units Started
(Seasonally adj. at Annual Rate, units), in Y / Y) |
Jan. 2020
prel. |
Dec. 2019
prel. |
Nov. 2019
prel. |
Oct. 2019
prel. |
Sep. 2019
prel. |
| Total |
-2.55 % |
16.95 % |
2.61 % |
6.69 % |
-7.92 % |
| In structures Single-family units |
-4.27 % |
11.17 % |
3.83 % |
-0.44 % |
-0.11 % |
| In structures with 2 - 4 units |
-41.18 % |
-15 % |
66.67 % |
9.09 % |
-47.62 % |
| In structures with 5 units
or more |
2.05 % |
32.02 % |
-1.93 % |
26.61 % |
-22.88 % |
| Northeast |
33.83 % |
25.47 % |
-7.83 % |
5.5 % |
-12.1 % |
| Midwest |
-29.13 % |
37.3 % |
3.35 % |
7.19 % |
-20.48 % |
| South |
-3.95 % |
9.31 % |
7.08 % |
2.37 % |
-4.92 % |
| West |
4.87 % |
19.83 % |
-3.11 % |
16.45 % |
-4.7 % |
New Housing Units Started
(Seasonally adj. at Annual Rate, in % Y/Y) |
Jan. 2020
prel. |
Dec. 2019
prel. |
Nov. 2019
prel. |
Oct. 2019
prel. |
Sep. 2019
prel. |
| Total |
23.1 % |
49.17 % |
9.47 % |
9.12 % |
4.58 % |
| In structures Single-family units |
4.12 % |
39.18 % |
15.17 % |
5.66 % |
5.4 % |
| In structures with 2 - 4 units |
-44.44 % |
-5.56 % |
33.33 % |
-40 % |
83.33 % |
| In structures with 5 units
or more |
91.93 % |
77.48 % |
-2.64 % |
20.7 % |
0.93 % |
| Northeast |
28.06 % |
24.3 % |
-14.52 % |
32.18 % |
-9.17 % |
| Midwest |
41.73 % |
103.2 % |
18.59 % |
-14.76 % |
4.38 % |
| South |
9.42 % |
28.57 % |
7.86 % |
16.11 % |
19.22 % |
| West |
45.61 % |
90.28 % |
18.69 % |
5.67 % |
-14.12 % |
New Housing Units Authorized
(Not seasonally adjusted, units) |
Jan. 2020
prel. |
Dec. 2019
prel. |
Nov. 2019
prel. |
Oct. 2019
prel. |
Sep. 2019
prel. |
| Total |
|
113,000 |
107,300 |
107,500 |
131,700 |
114,300 |
| In structures Single-family units |
|
70,400 |
62,400 |
63,800 |
79,800 |
70,600 |
| In structures with 2 - 4 units |
|
3,000 |
3,200 |
2,900 |
4,200 |
3,000 |
| In structures with 5 units or more |
|
39,600 |
41,700 |
40,800 |
47,700 |
40,600 |
| Northeast |
|
12,400 |
11,700 |
12,600 |
12,900 |
9,700 |
| Midwest |
|
12,500 |
12,900 |
15,500 |
19,100 |
16,400 |
| South |
|
59,900 |
51,800 |
51,600 |
67,100 |
58,900 |
| West |
|
28,200 |
30,900 |
27,900 |
32,600 |
29,300 |
New Housing Units Authorized
(Not seasonally adjusted, in Y / Y) |
Jan. 2020
prel. |
Dec. 2019
prel. |
Nov. 2019
prel. |
Oct. 2019
prel. |
Sep. 2019
prel. |
| Total |
5.31 % |
-0.19 % |
-18.38 % |
15.22 % |
-10 % |
| In structures Single-family units |
12.82 % |
-2.19 % |
-20.05 % |
13.03 % |
-9.6 % |
| In structures with 2 - 4 units |
-6.25 % |
10.34 % |
-30.95 % |
40 % |
-26.83 % |
| In structures with 5 units
or more |
-5.04 % |
2.21 % |
-14.47 % |
17.49 % |
-9.58 % |
| Northeast |
5.98 % |
-7.14 % |
-2.33 % |
32.99 % |
-24.81 % |
| Midwest |
-3.1 % |
-16.77 % |
-18.85 % |
16.46 % |
-11.35 % |
| South |
15.64 % |
0.39 % |
-23.1 % |
13.92 % |
-11.03 % |
| West |
-8.74 % |
10.75 % |
-14.42 % |
11.26 % |
-0.68 % |
New Housing Units Authorized
(Not seasonally adjusted, in % Y/Y) |
Jan. 2020
prel. |
Dec. 2019
prel. |
Nov. 2019
prel. |
Oct. 2019
prel. |
Sep. 2019
prel. |
| Total |
19.7 % |
12.47 % |
5.7 % |
17.07 % |
18.32 % |
| In structures Single-family units |
21.17 % |
16.85 % |
4.76 % |
7.55 % |
9.12 % |
| In structures with 2 - 4 units |
-3.23 % |
23.08 % |
-6.45 % |
16.67 % |
-9.09 % |
| In structures with 5 units
or more |
18.92 % |
5.84 % |
8.22 % |
37.07 % |
41.46 % |
| Northeast |
36.26 % |
28.57 % |
28.57 % |
26.47 % |
24.36 % |
| Midwest |
25 % |
55.42 % |
10.71 % |
-3.05 % |
19.71 % |
| South |
16.76 % |
5.07 % |
-2.09 % |
20.9 % |
19.47 % |
| West |
17.01 % |
8.04 % |
10.71 % |
20.3 % |
13.13 % |
New Housing Units Started
(Not seas. adj. at Annual Rate, units) |
Jan. 2020
prel. |
Dec. 2019
prel. |
Nov. 2019
prel. |
Oct. 2019
prel. |
Sep. 2019
prel. |
| Total |
|
109,100 |
108,500 |
103,100 |
114,800 |
112,900 |
| In structures Single-family units |
|
68,600 |
68,600 |
68,700 |
76,800 |
80,700 |
| In structures with 2 - 4 units |
|
700 |
1,200 |
1,700 |
1,100 |
1,100 |
| In structures with 5 units or more |
|
39,800 |
38,700 |
32,700 |
36,900 |
31,100 |
| Northeast |
|
12,300 |
9,300 |
8,600 |
10,600 |
10,300 |
| Midwest |
|
9,300 |
14,900 |
14,800 |
17,100 |
16,400 |
| South |
|
57,500 |
56,400 |
54,300 |
56,800 |
59,500 |
| West |
|
30,100 |
27,900 |
25,400 |
30,200 |
26,800 |
New Housing Units Started
(Not seas. adj. at Annual Rate, in Y / Y) |
Jan. 2020
prel. |
Dec. 2019
prel. |
Nov. 2019
prel. |
Oct. 2019
prel. |
Sep. 2019
prel. |
| Total |
0.55 % |
5.24 % |
-10.19 % |
1.68 % |
-6.77 % |
| In structures Single-family units |
0 % |
-0.15 % |
-10.55 % |
-4.83 % |
-2.18 % |
| In structures with 2 - 4 units |
-41.67 % |
-29.41 % |
54.55 % |
0 % |
-42.11 % |
| In structures with 5 units
or more |
2.84 % |
18.35 % |
-11.38 % |
18.65 % |
-15.26 % |
| Northeast |
32.26 % |
8.14 % |
-18.87 % |
2.91 % |
-7.21 % |
| Midwest |
-37.58 % |
0.68 % |
-13.45 % |
4.27 % |
-15.03 % |
| South |
1.95 % |
3.87 % |
-4.4 % |
-4.54 % |
-3.72 % |
| West |
7.89 % |
9.84 % |
-15.89 % |
12.69 % |
-7.27 % |
New Housing Units Started
(Not seas. adj. at Annual Rate, in % Y/Y) |
Jan. 2020
prel. |
Dec. 2019
prel. |
Nov. 2019
prel. |
Oct. 2019
prel. |
Sep. 2019
prel. |
| Total |
28.2 % |
51.32 % |
7.51 % |
6.99 % |
6.41 % |
| In structures Single-family units |
7.69 % |
40 % |
13.93 % |
2.95 % |
8.76 % |
| In structures with 2 - 4 units |
-46.15 % |
-7.69 % |
30.77 % |
-38.89 % |
83.33 % |
| In structures with 5 units
or more |
98.01 % |
80.84 % |
-4.66 % |
19.42 % |
-0.64 % |
| Northeast |
39.77 % |
25.68 % |
-14 % |
27.71 % |
-7.21 % |
| Midwest |
55 % |
109.86 % |
16.54 % |
-15.35 % |
5.13 % |
| South |
12.97 % |
32.08 % |
5.64 % |
10.94 % |
23.44 % |
| West |
55.15 % |
91.1 % |
16.51 % |
9.03 % |
-14.1 % |
Source U.S. Department of Commerce
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