Housing starts

RECENT NEWS
DailyFinance  Apr 8  Comment 
OTTAWA, ONTARIO -- (Marketwired) -- 04/08/14 -- Housing starts in Canada were trending at 184,476 units in March compared to 191,126 in February, according to Canada Mortgage and Housing Corporation (CMHC). The trend is a six-month moving average...
newratings.com  Mar 31  Comment 
TOKYO (dpa-AFX) - Japan's housing starts growth slowed more than expected in February, data showed Monday. Construction orders also grew at a slower pace after accelerating in January. Housing starts rose 1 percent in February from last...
Wall Street Journal  Mar 18  Comment 
Unseasonably cold weather appears to have chilled new-home construction in February, but underlying figures suggest building could be poised for a spring rebound.
StreetInsider.com  Mar 18  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Economic+Data/Feb.+Housing+Starts+Slow+on+Frigid+Weather%2C+But+Permits+Hint+at+Continued+Growth/9291524.html for the full story.
New York Times  Mar 18  Comment 
Consumer inflation in the United States was muted in February and housing starts fell for a third straight month in February.     
StreetInsider.com  Mar 18  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Economic+Data/Feb+Housing+Starts+907k+vs+910k+Expected%2C+Permits+1018k+vs+960k/9291446.html for the full story.
The Australian  Feb 28  Comment 
THE national housing market is seeing a gradual recovery in residential construction, led by NSW, Queensland and WA, HIA says.
BBC News  Feb 20  Comment 
The number of new houses being built in England last year was the highest for six years, according to government figures, but completions fell.
SeekingAlpha  Feb 19  Comment 
Hickey and Walters (Bespoke) submit: This morning's releases of Housing Starts and Building Permits for the month of December both missed expectations by a wide margin. While economists were expecting Housing Starts to come in at a level of...




 
TOP CONTRIBUTORS

Housing starts is a closely-watched indicator of the health of the home construction industry. Homebuilding is a major component of the overall economy due to all its size and its linkages with finance, basic materials, home furnishings and appliances, employment and overall growth.

Source

The Census Bureau, together with the Department of Housing and Urban Development (HUD) jointly report on new residential construction each month. The report has three components: Building permits, housing starts and housing completions. See [[1]]

Image:starts.png


Discussion

  • Housing starts is a measure of the number of privately-owned new housing units that began construction in the reporting month. It is usually reported at the seasonally adjusted annual rate (SAAR). The most recent peak in starts was 1.8 million units in November 2006. In February of 2008 the SAAR was 1,065,000. (These figures include all housing types except mobile homes/manufactured housing.)
  • Before a housing unit is built a building permit is issued. In a sense, building permits are a leading indicator of how many starts there will be in a month or two. In February 2008 the SAAR for permitted units was 978,000, some 7.8% below the revised January rate.
  • Housing completions tells us how many of the homes that were permitted and started have been finished. This measure doesn’t get much attention by the media or most investors. As of February 2008 completions were at the SAAR of 1,208,000, which is about 8.8% below January and 26% below the rate one year earlier.


Note

In general, and for a variety of reasons, starts are usually about 2.5% less than permits and completions are about 4.0% less than starts. The greatest variability is in the multifamily sector, where starts have been 22.5% less than permits (mostly due to reclassification to single-family) and completions have been 7.5% less than starts.

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