The quantity of housing starts and new building permits saw a healthy level of activity in the final weeks of 2014, according to new data released by the U.S. Census Bureau and the U.S. Department of Housing & Urban Development (HUD).
Single-family housing starts in December were at a rate of 728,000, which is 7.2 percent above the revised November figure of 679,000. Privately-owned housing starts in December were at a seasonally adjusted annual rate of 1,089,000, which is 4.4 percent above the revised November estimate of 1,043,000.
Single-family authorizations in December were at a rate of 667,000, which is 4.5 percent above the revised November figure of 638,000. However, privately-owned housing units authorized by building permits in December were at a seasonally adjusted annual rate of 1,032,000, which is 1.9 percent below the revised November rate of 1,052,000.
"With overall starts ending the year above one million units for the first time since 2007, we expect this momentum to carry forward in 2015," said National Association of Home Builders (NAHB) Chief Economist David Crowe. "A growing labor market and strengthening economy will spur steady growth in single-family housing production in the year ahead."
Single-family housing completions in December were at a rate of 667,000, which is 9.5 percent above the revised November rate of 609,000. Privately-owned housing completions in December were at a seasonally adjusted annual rate of 927,000, which is 6.3 percent above the revised November estimate of 872,000 and is 19.6 percent above the December 2013 rate of 775,000.
Last year saw a significant increase in housing activity. An estimated 1,032,900 housing units were authorized by building permits in 2014, which is 4.2 percent above the 2013 figure of 990,800. An estimated 1,005,800 housing units were started in 2014, which is 8.8 percent above the 2013 figure of 924,900. An estimated 883,000 housing units were completed in 2014, which is 15.5 percent above the 2013 figure of 764,400.
“The year 2014 ended on a high note for home builders, with construction on new homes rising significantly in December," said Quicken Loans Vice President Bill Banfield. "This, paired with the year-over-year change marked 2014 as the strongest calendar year total since 2007. With permits for single-family homes rising in tandem, the fastest rate in six years, the outlook for development is looking bright as we head into spring.”
