Housing Starts Jump More Than Expected: Economy Overheating?

Housing starts and permits were overall positive, but negative revisions make the increases less than meets the eye.

The Census Bureau’s monthly New Residential Construction Report shows a second strong month for housing.

Housing Starts

Privately-owned housing starts in November were at a seasonally adjusted annual rate of 1,297,000. This is 3.3% above the revised October estimate of 1,256,000 and is 12.9% above the November 2016 rate of 1,149,000.

Single-family housing starts in November were at a rate of 930,000; this is 5.3% above the revised October figure of 883,000.

The November rate for units in buildings with five units or more was 359,000.

Starts for October were revised lower from 1.290,000 units to 1,256,000 units.

Housing Permits

Privately-owned housing units authorized by building permits in November were at a seasonally adjusted annual rate of 1,298,000. This is 1.4% below the revised October rate of 1,316,000, but is 3.4% above the November 2016 rate of 1,255,000.

Single-family authorizations in November were at a rate of 862,000; this is 1.4% above the revised October figure of 850,000. Authorizations of units in buildings with five units or more were at a rate of 395,000 in November.

Permits for October were revised up from 1,297,000 units to 1,316,000 units.

Housing Completions

Privately-owned housing completions in November were at a seasonally adjusted annual rate of 1,116,000. This is 6.1% below the revised October estimate of 1,189,000 and is 7.2% below the November 2016 rate of 1,203,000.

Single-family housing completions in November were at a rate of 752,000; this is 4.6% below the revised October rate of 788,000.

The November rate for units in buildings with five units or more was 353,000.

By Region

By region, the Northeast and Midwest were lackluster. The far more important South and West were humming. Both areas has the highest number of starts in at least a year.