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
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