Wednesday, December 16, 2015

Housing Starts increased to 1.173 Million Annual Rate in November

by Bill McBride on 12/16/2015 08:40:00 AM

From the Census Bureau: Permits, Starts and Completions

Housing Starts:
Privately-owned housing starts in November were at a seasonally adjusted annual rate of 1,173,000. This is 10.5 percent above the revised October estimate of 1,062,000 and is 16.5 percent above the November 2014 rate of 1,007,000.

Single-family housing starts in November were at a rate of 768,000; this is 7.6 percent above the revised October figure of 714,000. The November rate for units in buildings with five units or more was 398,000.

Building Permits:
Privately-owned housing units authorized by building permits in November were at a seasonally adjusted annual rate of 1,289,000. This is 11.0 percent above the revised October rate of 1,161,000 and is 19.5 percent above the November 2014 estimate of 1,079,000.

Single-family authorizations in November were at a rate of 723,000; this is 1.1 percent above the revised October figure of 715,000. Authorizations of units in buildings with five units or more were at a rate of 539,000 in November.
emphasis added
Total Housing Starts and Single Family Housing Starts Click on graph for larger image.

The first graph shows single and multi-family housing starts for the last several years.

Multi-family starts (red, 2+ units) increased in November.  Multi-family starts are up 20% year-over-year.

Single-family starts (blue) increased in November and are up 15% year-over-year.

This is the highest level of single family starts since January 2008.

Total Housing Starts and Single Family Housing Starts The second graph shows total and single unit starts since 1968.

 The second graph shows the huge collapse following the housing bubble, and then - after moving sideways for a couple of years - housing is now recovering (but still historically low),

Total housing starts in November were above expectations, and starts for September and October were revised up slightly.   A solid report.  I'll have more later ...