Economy

Housing starts drop again in January

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

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.