Housing starts, permits rise in December
Residential construction moved ahead in December despite facing numerous hurdles, including supply chain issues, shortages of labor, and inflation.
According to the latest Monthly New Residential Construction Report, released this morning by the U.S. Census Bureau and the Department of Housing and Urban Development, privately-owned housing starts in December increased 1.4% to a seasonally adjusted rate of 1.702 million from the revised November rate of 1.678 million.
The latest report is also 2.5% above the December 2020 rate of 1.661 million.
Single-family housing starts fell 2.3% to a rate of 1.172 million compared to the revised November figure of 1.199 million.
Privately‐owned housing permits jumped 9.1% to 1.873 million compared to the revised November rate of 1.717 million. The latest permit report is also 6.5% higher than the December 2020 rate of 1.758 million.
Single-family permits rose 2% to a rate of 1.128 million from the revised November rate of 1.106 million.
Yesterday, the National Association of Home Builders reported that Builder Confidence fell one point in January.
Here’s how housing starts and permits break down by region compared to the previous month:
In the Northeast, housing starts increased 20.2% as single-family starts were up 11.1%. Combined permits ascended 111.9% as single-family permits 32.3%. The latest report notes that the massive increase for permits in the Northeast was driven by massive growth in building permits issued in Philadelphia, following several real estate tax changes for residential projects permitted after Dec. 31, 2021.
In the Midwest, total starts jumped 36.5% while single-family starts soared 50.8%. Permits climbed 21.9% as single-family permits grew 12.1%.
In the South, total starts fell 1.9% as single-family starts dropped 8.2%. Total permits dipped 0.8% as single-family permits edged up by 0.5%.
In the West, total starts declined 13.8% as single-family starts were down 14.6%. Total permits decreased 10% and single-family permits were down 7%.