The US Census Bureau released their Housing Starts and Building Permits report this morning. Nationally the Housing Starts dipped slightly:
Single-family housing starts in January were at a rate of 508,000; this is 1.0 percent (±19.0%)* below the revised December figure of 513,000. The January rate for units in buildings with five units or more was 175,000.
The Midwest Region took a heavier drop, -35.9% from December 2011 to January 2012. I am not sure how to explain that large of drop yet. I suspect some of this will be seasonal. When the Minneapolis/St Paul data comes out, we will get a clearer understanding of our marketplace.
Chart comparing National 1-unit housing starts compared to the Midwest Region 1-unit housing starts.
The Building Permits nationally were up almost 1% and the Midwest Region’s Building 1-Unit Building Permits were down -2.7%. Keep in mind the Midwest Region is a large area and includes Chicago, Milwaukee, and St Louis. Conditions in those marketplaces may be what is pulling the midwest regions figures below the national stats. When the Minneapolis/St Paul figures are released, it will give us a clearer picture of what is happening.
The good news is the permits aren’t down by much, just the housing starts. Weather can play a role in when the construction actually starts vs when the building permit is pulled…
Single-family authorizations in January were at a rate of 445,000; this is 0.9 percent (±1.1%)* above the revised December figure of
441,000. Authorizations of units in buildings with five units or more were at a rate of 208,000 in January.
- Housing Starts increase in November (calculatedriskblog.com)
- NAHB Builder Confidence index increases in February; Highest in over four years (calculatedriskblog.com)
- Builder Sentiment Up Again (eyeonhousing.wordpress.com)
- Building Permits for Minneapolis/St Paul (craigkamman.com)