Housing Production Ends the Year Strong

Housing starts in December were at a seasonally adjusted annual rate of 999,000, according to estimates from the Census Bureau and Department of Housing and Urban Development. In addition, the November level was revised up by 1.5% to a 1,107,000 annualized rate. As a result, the December reading was 9.8% below this revised November estimate, but 1.6% above the pace of housing starts recorded in December 2012.

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Despite the month-over-month decline, housing production ended the year in a relatively strong fashion. The annualized rate of housing starts recorded in December exceeded the level recorded for all of 2013, 923,000, by 8.2%. The December recording of total housing starts was also the third highest level in 2013 behind the 1.1 million starts recorded in November and 1 million starts registered in March.

Moreover, on a 3-month moving average basis, one method used to identify an underlying trend, housing starts rose by 4.4% in December, eclipsing 1million for the first time in 2013. The 3-month moving average of total housing starts last exceeded 1million in June 2008.

The Census estimates for 2013 demonstrate it was a positive one for home building. Total housing starts are estimated to come in at 923,000, 18% higher than 2012. Multifamily starts are estimated to total 306,000, a nearly 25% jump over 2012. And single-family starts grew 15% over 2012 to 618,000.

Going forward, housing starts should continue to show progress as pent-up demand is unlocked and the labor market improves.  The NAHB/Wells Fargo Housing Market Index is consistent with this forecast, coming in a level of 56 in January – the eighth consecutive month above the key level of 50.

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7 Responses to Housing Production Ends the Year Strong

  1. […] housing starts may have declined slightly in December, they remain at roughly (a seasonally adjusted annual rate […]

  2. […] housing starts may have declined slightly in December, they remain at roughly (a seasonally adjusted annual rate […]

  3. […] final data for 2013 showed significant increases for home building and remodeling activity, as pent-up housing demand […]

  4. […] Bureau/HUD December housing starts report revealed a solid finish for the end of the year. The pace of housing construction came in at an annualized rate of 999,000. This rate was almost 10% below an unusually strong level reported in November (1.107 million, […]

  5. […] Bureau/HUD December housing starts report revealed a solid finish for the end of the year. The pace of housing construction came in at an annualized rate of 999,000. This rate was almost 10% below an unusually strong level reported in November (1.107 million, […]

  6. […] The final data for 2013 showed significant increases for home building and remodeling activity, as pent-up housing demand was unlocked. Numbers from the Census Bureau and the Department of Housing and Urban Development reveal that total housing starts increased more than 18 percent from 2012 to 2013. For homes built in multifamily properties with five or more units, construction was up almost 25 percent year over year. Such units are mostly rental homes, with this market recovering first as newly formed households typically rent before becoming homeowners. […]

  7. […] The December measure of housing construction came in just under a one million unit pace, down 9.8% from an unusually strong November, but up 1.6% year-over-year […]

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