Single-family Construction Up Again

Single-family housing starts increased 4.4% in December to a seasonally-adjusted annual rate of 470,000, the best monthly number since May 2010 when the home buyer tax credit ended. Total housing starts dropped 4.1% due entirely to a realignment of multifamily starts from November’s unsustainable level of 235,000. Multifamily starts (buildings with two or more units) fell to 187,000 or down 20.4%. Multifamily construction exhibited a saw-toothed pattern for much of 2011 but still came in 55% better than 2010.
Total permits were essentially unchanged with the same opposing trends between single-family and multifamily. Single-family permits rose 1.8% to the highest monthly level in 2011 while multifamily permits fell 3.7% from an unusually high November level. Regionally, single-family construction rose in all regions except the Northeast where the November levels spiked and readjusted to a more sustainable level in December.
The relatively positive end to 2011 for single-family construction did not overcome the poor start and the year comes in at the worst since the early 1940s at 428,600 homes. The previous low was 2009 at 445,000. The lowest monthly rate on record remains January 2009 at 360,000. The significant improvement in multifamily throughout 2011 brings total housing starts for the year to 606,900, a 3.4% increase over 2010.
Total housing starts three-month moving average has increased for eight months and that trend is expected to continue into 2012 for an annual rate of increase around 17%. The absolute levels of housing construction remain below half of normal and a true return to the underlying demographically driven demand for additional housing of about 1.7 million homes is still several years away.

About these ads

10 Responses to Single-family Construction Up Again

  1. [...] Single-family Construction Up Again (eyeonhousing.wordpress.com) Advertisement GA_googleAddAttr("AdOpt", "1"); GA_googleAddAttr("Origin", "other"); GA_googleAddAttr("theme_bg", "ffffff"); GA_googleAddAttr("theme_border", "bbbbbb"); GA_googleAddAttr("theme_text", "333333"); GA_googleAddAttr("theme_link", "1c9bdc"); GA_googleAddAttr("theme_url", "1c9bdc"); GA_googleAddAttr("LangId", "1"); GA_googleAddAttr("Autotag", "business"); GA_googleAddAttr("Tag", "housing"); GA_googleAddAttr("Tag", "census-bureau"); GA_googleAddAttr("Tag", "housing-completions"); GA_googleAddAttr("Tag", "housing-starts"); GA_googleAddAttr("Tag", "multifamily-completion"); GA_googleAddAttr("Tag", "national-association-of-home-builders"); GA_googleAddAttr("Tag", "united-states-census-bureau"); GA_googleFillSlot("wpcom_sharethrough"); Rate this: Like this:LikeBe the first to like this post. [...]

  2. [...] past December has also been the best monthly number since May 2010. According to the National Association of Home Builders, multi-family housing construction also proved to be 55 percent better than that of 2010. We are [...]

  3. [...] source, National Association of Home Builders has announced that Single Family Construction is Up Again.  Single-family housing starts increased 4.4% in December to a seasonally-adjusted annual rate of [...]

  4. deep says:

    Great information! Very useful and impressive.raffles-residence

  5. [...] as the lack of multifamily and (to a much lesser extent) single-family construction has created an increased demand, so too has the lack of hotel construction prompted a [...]

  6. [...] been observed with other indicators for the single-family housing market, including an increase in new construction starts and rising homebuilder sentiment. Additional growth in single-family construction activity is [...]

  7. [...] been observed with other indicators for the single-family housing market, including an increase in new construction starts and rising homebuilder sentiment. Additional growth in single-family construction activity is [...]

  8. [...] been observed with other indicators for the single-family housing market, including an increase in new construction starts and rising homebuilder sentiment. Additional growth in single-family construction activity is [...]

  9. [...] year closed out with an increase in single family housing starts, according to a report from the National Association of Home Builders. Single-family housing starts increased 4.4% in December to a seasonally-adjusted annual rate of [...]

  10. [...] year closed out with an increase in single family housing starts, according to a report from the National Association of Home Builders. Single-family housing starts increased 4.4% in December to a seasonally-adjusted annual rate of [...]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 7,106 other followers

%d bloggers like this: