Housing starts

RECENT NEWS
newratings.com  Apr 16  Comment 
BRUSSELS (dpa-AFX) - The U.S. building permits and housing starts for March were released at 8:30 am ET Wednesday. Following these reports, the greenback showed mixed trading against other major currencies. While the greenback declined against the...
Clusterstock  Apr 16  Comment 
newratings.com  Apr 16  Comment 
WASHINGTON (dpa-AFX) - Housing starts in the U.S. showed a notable increase in the month of March, according to a report released by the Commerce Department on Wednesday, although starts still came in well below analyst estimates. The report...
SeekingAlpha  Apr 15  Comment 
By James Picerno: Housing starts are expected to total 930,000 in tomorrow’s update for March, based on The Capital Spectator’s median econometric forecast (seasonally adjusted annual rate). The projection represents a modest rise vs. the...
FX Street  Apr 14  Comment 
WEEK IN REVIEW Canada – The Spring edition of the Bank of Canada's Business Outlook Survey... For more information, read our latest forex news and reports.
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.




 
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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