Skip to main content

Winter Freeze: Housing Starts Dip 8.5 Percent in January

NationalMortgageProfessional.com
Feb 20, 2013

Due to a double-digit dip on the typically volatile multifamily side, nationwide housing starts declined 8.5 percent to a seasonally adjusted annual rate of 890,000 units in January, according to newly released data from HUD and the U.S. Census Bureau. Meanwhile, issuance of permits for new-home construction rose 1.8 percent to 925,000 units—the quickest pace since mid-2008. "Steady demand for new homes is prompting builders to put more construction crews back to work in order to replenish thin supplies of completed product," noted Rick Judson, chairman of the National Association of Home Builders (NAHB) and a home builder from Charlotte, N.C. "We expect this progress to continue through the spring buying season and beyond, with credit availability and poor appraisals being the primary limiting factors." "Today's report is quite positive in that it shows continued upward movement in single-family housing production and permitting activity for both single- and multifamily units," noted NAHB Chief Economist David Crowe. "Meanwhile, the decline in multifamily starts reflects an adjustment from an unsustainably large gain in December, and is consistent with the up-and-down swings that are often associated with that sector." In January, single-family housing starts were virtually unchanged from an improved pace in the previous month, registering a 0.8 percent gain to 613,000 units. This was the strongest pace of single-family housing production since July 2008. Meanwhile, multifamily housing starts, which tend to display significant month-to-month volatility, declined 24.1 percent to 277,000 units. Regionally, combined single- and multifamily housing production gained 4.1 percent in the South and 16.7 percent in the West, but fell 35.3 percent in the Northeast and 50 percent in the Midwest in January. Permit issuance, which can be an indicator of future building activity, rose 1.9 percent on the single-family side to a seasonally adjusted, annual pace of 584,000 units and rose 1.5 percent on the multifamily side to a 341,000-unit pace in January. Both were the strongest permit numbers seen since mid-2008. Permitting activity rose in three out of four regions in January, with a 10.1 percent gain registered in the Northeast, a 1.4 percent gain registered in the Midwest and a 1.1 percent gain registered in the South. The West posted virtually no change in permitting activity, with a 0.5 percent decline.
Published
Feb 20, 2013
Helping the H.E.L.P.E.R.s

Federal bill poised to open up market to more teachers, first responders

Dec 01, 2023
Fidelity National Financial Hit By Cyberattack

Industry-leading provider of title insurance and settlement services radio silent on reported breach.

Nov 28, 2023
Citizens Bank Bids Farewell To Wholesale Mortgage Channel

In a strategic pivot, the Providence-based banking giant will stop accepting new wholesale mortgage submissions.

Nov 16, 2023
Surprising Surge In Mortgage Customer Satisfaction, J.D. Power Study Reveals

Study found first-time homebuyers were harder to satisfy, customers don't just shop rates.

Nov 16, 2023
Women Continue To Defy Homebuying Challenges, Representing 22% Of The Market, Survey Finds

Young, educated, diverse, and increasingly savvy, women homebuyers navigate homeownership hurdles with determination.

Nov 15, 2023
Better.com Stays Bullish On Industry Disruption Amid Q3 Losses

Despite a $340 million Q3 loss, Better.com's leadership emphasizes cost reductions, automation, and investment in technology.

Nov 15, 2023