Wednesday, November 18, 2020

Housing Starts increased to 1.530 Million Annual Rate in October

by Calculated Risk on 11/18/2020 08:38:00 AM

From the Census Bureau: Permits, Starts and Completions

Housing Starts:
Privately-owned housing starts in October were at a seasonally adjusted annual rate of 1,530,000. This is 4.9 percent above the revised September estimate of 1,459,000 and is 14.2 percent above the October 2019 rate of 1,340,000. Single-family housing starts in October were at a rate of 1,179,000; this is 6.4 percent above the revised September figure of 1,108,000. The October rate for units in buildings with five units or more was 334,000.

Building Permits:
Privately-owned housing units authorized by building permits in October were at a seasonally adjusted annual rate of 1,545,000. This is virtually unchanged (±1.3 percent)* from the revised September rate of 1,545,000, but is 2.8 percent above the October 2019 rate of 1,503,000. Single-family authorizations in October were at a rate of 1,120,000; this is 0.6 percent above the revised September figure of 1,113,000. Authorizations of units in buildings with five units or more were at a rate of 365,000 in October.
emphasis added
Total Housing Starts and Single Family Housing StartsClick 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) were unchanged in October compared to September.   Multi-family starts were down 18% year-over-year in October.

Single-family starts (blue) increased in October, and were up 29% year-over-year.   This is the highest level for single family starts since 2007.

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

The second graph shows the huge collapse following the housing bubble, and then eventual recovery (but still historically low).

Total housing starts in October were above expectations, and starts in August and September were revised up, combined.

I'll have more later …