Last Update: 18-Feb-15 09:05 ET
- New housing starts declined 2.0% in January to 1.065 mln from a downwardly revised 1.087 mln (from 1.089 mln) in December. The Briefing.com Consensus expected housing starts to fall to 1.070 mln.
- After a big rush in single-family starts in December, new single-family construction fell back to November levels. Single-family starts declined 6.7% to 678,000 from 727,000 in December.
- The pullback in single-family construction is disappointing. Normally, this sector moves on stable trends. The improvements in the NAHB Homebuilders’ Index during the summer suggested that single-family construction would move steadily higher. The decline in January suggests single-family construction may not have reached the turning point we had hoped for last month.
- Multifamily construction levels increased 7.5% in January to 387,000 from 360,000 in December.
- The number of units under construction continued to tick higher and increased 1.1% to 839,000 in January from 830,000 in December. Since GDP calculations are based on put-in-place values, the increase in homes under construction bodes well for GDP growth.
- Improvements in homebuilder sentiment have not translated into significant construction growth.