Industry News
Housing Starts Rise 2.8 Percent in January
02/18/2010
The U.S. Census Bureau and the Department of Housing and Urban Development announced that privately-owned housing starts in January were at a seasonally adjusted annual rate of 591,000, a 2.8 percent increase above the revised December estimate of 575,000. The figure is 21.1 percent above the January 2009 rate of 488,000.
Single-family housing starts in January were at a rate of 484,00, 1.5 percent above the revised December figure of 477, 000. The January rate for units in buildings with five units or more was 100,000.
"Builders are starting to see the positive impacts of home buyer tax credits and other favorable buying conditions in terms of consumer demand, and are cautiously increasing production to meet that demand," said National Association of Home Builders (NAHB) Chairman Bob Jones, a home builder from Bloomfield Hills, Mich.
"As our latest home builder surveys have indicated, today's excellent home buying conditions - including the availability of tax credits for first-time and repeat buyers, very favorable mortgage rates and stabilizing home values - are helping drive potential buyers back to the market," said NAHB Chief Economist David Crowe. However, he said, "A continuing shortfall in available credit for building projects is still producing a drag on new construction and slowing the progress of recovery in housing and the overall economy."
Combined single- and multifamily housing starts rose in three out of four regions this January. The South and West each registered a third consecutive month of improvement, with 1 percent and 8.9 percent gains, respectively, and the Northeast also posted a 10 percent gain. The Midwest saw a 3.2 percent decline in overall housing starts.
BUILDING PERMITS
Privately-owned housing units authorized by building permits in January were at a seasonally adjusted annual rate of 621,000. This is 4.9 percent below the revised December rate of 653,000, but is 16.9 percent above the January 2009 estimate of 531,000.
Single-family authorizations in January were at a rate of 507,000; this is 0.4 percent above the revised December figure of 505, 000. Authorizations of units in building with five units or more were at a rate of 96,000 in January.
Permit issuance declined in three out of four regions this January. The West was the only region to post a gain, of 8.5 percent, while declines of 17.8 percent, 20.2 percent and 1.3 percent were registered in the Northeast, Midwest and South, respectively.
HOUSING COMPLETIONS
Privately-owned housing completions in January were at a seasonally adjusted annual rate of 659,000. This is 12.4 percent (�7.8%) below the revised December estimate of 752,000 and is 15.3 percent (�10.5%) below the January 2009 rate of 778,000. Single-family housing completions in January were at a rate of 427,000; this is 12.9 percent (�7.1%) below the revised December rate of 490,000. The January rate for units in buildings with five units or more was 215,000.