US housing starts fall more than expected while permits are steady
December’s decline in starts suggests that November’s rise was more of a temporary spike than an increase in the underlying pace of growth
Groundbreaking on new US homes eased from the fastest pace in 13 months while permits held steady to finish the strongest year for housing construction in a decade, government figures showed on Thursday.
Highlights of housing starts (December)
Residential starts fell 8.2 per cent to a 1.19 million annualised rate (against an estimated 1.28 million units) after a 1.3 million pace in the prior month; it is the biggest drop since November 2016.
Single-family home starts fell 11.8 per cent to 836,000 units; multifamily rose 1.4 per cent to 356,000 units.
Permits, a proxy for future construction of all types of homes, fell 0.1 per cent to 1.302 million rate (against an estimated 1.29 million) from a 1.3 million pace.
Applications to build single-family homes rose to an 881,000 annual rate, the fastest since August 2007, from 865,000 units.
Key takeaways