Housing starts

RECENT NEWS
MarketWatch  Oct 17  Comment 
The U.S. dollar rises against its rivals on a jump in housing starts that were in line with economists’ expectations.
Wall Street Journal  Oct 17  Comment 
U.S. home building rebounded in September on the strength of apartment construction, a category that provides less of an economic boost than single-family homes.
Clusterstock  Oct 17  Comment 
Housing starts rose 6.3% in September to an annualized pace of 1.02 million. Expectations were for starts to rebound some, growing 5.4% month over month to an annualized rate of just over 1 million after last month's disappointing...
StreetInsider.com  Oct 17  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Economic+Data/Sept+Housing+Starts+1017K+vs+1008K+Expected%2C+Up+6.3%25+MoM/9919331.html for the full story.
newratings.com  Sep 30  Comment 
TOKYO (dpa-AFX) - Housing starts in Japan declined at a slower rate in August, defying expectations of a faster rate of decline, data from the Ministry of Land, Infrastructure, Transport and Tourism showed Tuesday. Housing starts dropped 12.5...
SeekingAlpha  Sep 19  Comment 
By S&P Dow Jones Indices: By David Blitzer August housing starts, reported today, were disappointing at 956,000 units, a drop of 14.4% from July and 8% from August last year. Only twice this year have monthly reports of housing starts topped...
Wall Street Journal  Sep 18  Comment 
U.S. home builders ramped up construction this summer as more families entered the market, but a tumble in August and other obstacles are clouding the sector's outlook.
Clusterstock  Sep 18  Comment 
Housing starts plummeted in August. Starts fell 14.4% to an annualized rate of 956,000. This is the biggest drop since April 2013. Economists were expecting the pace of starts to decline 5.2% to 1.04 milion. Building permits dropped 5.6% to...




 
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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