Economy
Housing starts drop again in January
Written by Ethan Bernard
February 19, 2024
US housing starts fell for the second consecutive month in January, according to the most recent data from the US Census Bureau.
Total housing starts stood at a seasonally adjusted annual rate (SAAR) of 1,331,000 units in January, off 14.8% from the revised December estimate of 1,562,000. This is also 0.7% below the January 2023 rate of 1,340,000, Census said.
Single‐family housing starts in January were 1,004,000, down 4.7% from the revised December figure of 1,054,000.
“Moderating mortgage interest rates in 2024 will ultimately lead to gains for single-family home building this year,” Alicia Huey, chairman of the National Association of Home Builders (NAHB), said in a statement.
“However,” she added, “tighter lending conditions and higher costs for construction and development loans are holding back some construction at the start of the year.”
Regionally, combined single-family and multi-family starts were down across the nation month over month (m/m). They fell 20.6% in the Northeast, 30% in the Midwest, 9.7% in the South, and 15.7% in the West.
At the same time, the overall number of privately owned housing units authorized by building permits in January was at a SAAR of 1,470,000. While down 1.5% from a revised December rate of 1,493,000, tha was 8.6% higher than the January 2023 rate of 1,354,000.
Ethan Bernard
Read more from Ethan BernardLatest in Economy
SMU Community Chat: Tariff-induced panic purchases, inflation, and calculating costs
Chief executive of the Institute for Supply Management (ISM), Tom Derry highlighted how reactive buying behavior has shifted the market into a quiet demand period. Derry presented ISM data during the weekly SMU community chat.
Architecture billings still sluggish despite project inquiry uptick
The Architecture Billings Index (ABI), a leading indicator for non-residential construction activity, declined for an eighth straight month in June.
Beige Book: Tariff pressures mount, flat outlook
All districts reported “experiencing modest to pronounced input cost pressures related to tariffs, especially for raw materials used in manufacturing and construction.”
Steel exports recovered in May but still historically low
US steel exports rose 10% from April to May but remained low compared to recent years. This came just one month after exports fell to the lowest level recorded in nearly five years.
AISI: Raw steel production ticks up near recent high
The volume of raw steel produced by US mills inched higher last week, according to the American Iron and Steel Institute (AISI). After steadily increasing in April and May, domestic mill output stabilized in early June and has remained historically strong since.