Thursday, January 21, 2021

Housing Starts increased to 1.669 Million Annual Rate in December

by Calculated Risk on 1/21/2021 08:47:00 AM

From the Census Bureau: Permits, Starts and Completions

Housing Starts:
Privately-owned housing starts in December were at a seasonally adjusted annual rate of 1,669,000. This is 5.8 percent above the revised November estimate of 1,578,000 and is 5.2 percent above the December 2019 rate of 1,587,000. Single-family housing starts in December were at a rate of 1,338,000; this is 12.0 percent above the revised November figure of 1,195,000. The December rate for units in buildings with five units or more was 312,000.

An estimated 1,380,300 housing units were started in 2020. This is 7.0 percent above the 2019 figure of 1,290,000.

Building Permits:
Privately-owned housing units authorized by building permits in December were at a seasonally adjusted annual rate of 1,709,000. This is 4.5 percent above the revised November rate of 1,635,000 and is 17.3 percent above the December 2019 rate of 1,457,000. Single-family authorizations in December were at a rate of 1,226,000; this is 7.8 percent above the revised November figure of 1,137,000. Authorizations of units in buildings with five units or more were at a rate of 437,000 in December.
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) decreased in December compared to November.   Multi-family starts were down 39% year-over-year in December.

Single-family starts (blue) increased in December, and were up 28% year-over-year.   This is the highest level for single family starts since 2006.

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 December were above expectations, and starts in October and November were revised up.   A very strong report.

I'll have more later …