US housing starts in February increased 9.8% month-over-month to a seasonally adjusted annual rate of 1.450 million units (consensus 1.313 million) while building permits increased 13.8% month-over-month to a seasonally adjusted annual rate of 1.524 million (consensus 1.345 million), the highest for five months. Affordability is the major issue overhanging; mortgage demand hovers near its lowest level since 1997. We saw stronger-than-expected activity in multi-units and single-family starts, which were up 1.1% month-over-month while single-family permits increased 7.6%.
The move suggests disruption and demographic influences.
United States Housing Starts February 2023
- US Total housing starts increased 9.8% month-over-month to a seasonally adjusted annual rate of 1.450 million units (consensus 1.313 million), the highest in five months
- Single-family housing starts were up 1.1% to 830,000
- Multi-units starts with five units or more surged 24.1% to 608,000, the highest since April last year.
- Starts soared in the Midwest (70.3% to 201,000), the West (16.8% to 347,000), and the South (2.2% to 796,000) but fell in the Northeast (-16.5% to 106,000).
- Compared to February 2022 however, housing starts were 18.4% lower.
- In January, housing starts were revised higher to 1.321 million from an early estimate of 1.309 million but remaining the lowest since June of 2020.
The housing market had been supported by low interest rates and increasing demand from people moving away from big cities due to the coronavirus crisis, but the momentum slowed with rising inputs amid supply constraints could limit production to ease a shortage of homes. Homebuilding activity has seen an adverse impact from sharply higher mortgage rates on buyer demand and builder sentiment. Further to rising mortgage rates, headwinds come from supply constraints and higher house prices. Rates are now sharply higher (over 6%).
United States Building Permits February 2023
- US Building Permits Building permits rose 13.8% month-over-month to a seasonally adjusted annual rate of 1.524 million (consensus 1.345 million).
- Single-family permits increased 7.6 percent to a rate of 777,000, up from January’s near three-year low of 722,000,
- Volatile multi-segment jumped 21.1 percent to 747,000.
- Permits were up in the South (10.9 percent to 845,000), West (30.0 percent to 381,000) and Midwest (9.6 percent to 195,000) but were down in the Northeast (-2.8 percent to 103,000).
- Permits increased in the South (10.9 percent to 845,000), West (30.0 percent to 381,000) and Midwest (9.6 percent to 195,000)
- Permits decreased in the Northeast (-2.8 percent to 103,000).
- It was the highest for five months
Housing Completions
- Privately‐owned housing completions in February were at a seasonally adjusted annual rate of 1,557,000. This is 12.2 percent (±15.0 percent)* above the revised January estimate of 1,388,000 and is 12.8 percent (±16.2 percent)* above the February 2022 rate of 1,380,000.
- Single‐family housing completions in February were at a rate of 1,037,000; this is 1.0 percent (±15.0 percent)* above the revised January rate of 1,027,000.
- The February rate for units in buildings with five units or more was 509,000
Notice of methodology change: Beginning with the January 2022 New Residential Construction release on February 17, 2022, the monthly Building Permits Survey design will change from a representative sample to a cut‐off sample. This change will allow complete local and county data on new housing units authorized by permits to be published on a monthly basis going forward. For additional details on this change and the impact on New Residential Construction, see our FAQ document.
Source: US Census
From The TradersCommunity News Desk