Updated: 16-Feb-18 09:18 ET
|Updated: 16-Feb-18 09:18 ET
- Housing Starts increased 9.7% month-over-month in January to a seasonally adjusted annual rate of 1.326 million (Briefing.com consensus 1.240 million) while building permits jumped 7.4% to a seasonally adjusted annual rate of 1.396 million (Briefing.com consensus 1.300 million).
- The increase in permits was driven entirely by permits for multi-unit dwellings. Single-family permits declined 1.7% to 866,000.
- Starts, however, were helped by a 3.7% increase in single-family units, which totaled 877,000. The Northeast saw the biggest jump in single-family starts (+34.7%), followed by the South (+4.5%). Single-family starts fell 4.0% in the Midwest and 0.4% in the West.
- Total housing starts were the highest since October 2016. The increase in total permits was the largest since June 2007.
- The key takeaway from the report is that it points to more supply coming to a housing market that is in desperate need of single-family supply. At the same time, this report provides a positive input for Q1 GDP as the number of units under construction in January (1.120 million) was 1.5% above the fourth quarter average.
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