Housing starts hold steady in September

Total housing starts, expressed as a seasonally adjusted annual rate (SAAR), came in at 590,000, according to data released today by the Commerce Department. That's 0.5% ahead of the previous month -- which was adjusted downward, from 598,000 to 587,000.

If not for the downward adjustment of August starts, the total percentage would have declined 1.3%.

There was better news for builders, and their suppliers, in the single-family front. Single-family housing starts in September were at a rate of 501,000; this is 3.9% above the revised August figure. Moreover, the August figure was revised upward, from a previously stated 479,000 to 482,000.

Compared with September of last year, total starts declined 28.2%, and single-family starts declined 8.7%.

The total 590,000 figure is the highest since January, which also showed 590,000. For a higher single-family rate, one has to go all the way back to October 2008, when single-family starts hit 534,000.

On a regional basis, the South posted the strongest month-to-month performance, showing a 7.1% increase in total starts and a 14.3% increase in single-family starts.

Compared with a year ago, the strongest region -- or, more accurately, the least depressed region in terms of residential construction percentage declines -- is the Midwest, which showed a 22.5% decline in total starts, and a 4.6% decline in single-family starts.

In the same Commerce Department report, September building permits came in at an SAAR of 573,000, down 1.2% from August. Single-family permits came in at a rate of 450,000, down 3%.