Last Update: 21-Jan-15 08:53 ET
- Led by a large increase in single-family construction, new housing starts increased 4.4% in December to 1.089 mln from an upwardly revised 1.043 mln (from 1.028 mln) in November. The Briefing.com Consensus pegged new housing starts at 1.040 mln.
- Single-family construction increased 7.2% in December to 728,000 from 679,000 in November. That was the largest number of single-family starts since 773,000 were started in January 2008. The difference now is that construction is recovering as opposed to dropping rapidly after the bubble burst.
- The NAHB Homebuilders Index has recovered following an unexpected contraction in the middle of 2014. That recovery, however, has not really translated into significant housing starts growth. Given that the increase in starts was due to the normally stable single-family sector, the improvements in sentiment may finally be translating into actual construction growth. If this is true, we would expect to see continued growth in the industry in 2015.
- Multifamily construction declined 0.8% in December to 361,000 from 364,000 in November. Over the past several months, multifamily construction has followed a sawtooth pattern. The small dip keeps multifamily construction on trend.
- Housing starts increased 8.7% to 1.006 mln in 2014. That was the most starts since 1.355 mln were started in 2007.