Annual Pace For October
Provided by: Department of Commerce
Current Release: PDF

Starts m/m: -4.5%, forecast -4.7%, pr. -3.0% (rev from -6.3%, Sep),
-10.0% r (Aug), 11.0% (Jul), 9.1% (Jun), -2.7% (May), 8.2% (Apr)

Housing starts fell for the fourth straight month. Starts decreased 4.5% to a seasonally adjusted 791,000 annual rate, which is a record low. The figures came mainly in line with expectations, but shows that the housing market continues to be depressed. Falling sales and prices are giving builders less reason to build new homes as was seen in the NAHB housing market index yesterday (which fell to its low for the series). Looking at the number for building permits, the outlook grows even bleaker as permits fell 12.0% to a 708,000 annual rate in October. As permits are a leading indicator for housing starts, its a sign that future construction will be restrained as well. 

Annual Pace For September
Provided by: Department of Commerce
Current Release: PDF

Starts m/m: 6.3%, pr. -6.2% (Aug), -11.0% (Jul), 9.1% (Jun), -2.7% (May),
8.2% (Apr), -11.9% (Mar)

Annual Pace For August
Provided by: Department of Commerce
Current Release: PDF

Starts m/m: -6.2% pr. -11.0% (Jul), 9.1% (Jun), -2.7% (May), 8.2% (Apr), -11.9% (Mar)

August saw 895,000 new privatedly owned housing units started, undershooting expectations. This is 6.2% lower than last month's figures, and 33.1% lower compared to annual housing starts in August 2007. This total of housing starts is the lowest since 1991. The Northeast and Midwest led the decline, down 14.5% and 13.6% respectively, while The South and West saw 7.4% and 10.8% declines.

Annual Pace For July
Provided by: Department of Commerce
Official Release: PDF  

Starts m/m: -11.0%, pr. 9.1%, -2.7% (May), 8.2% (Apr), -11.9% (Mar)

Housing starts quickly fell after seeing some gains in June. The annual pace of new housing construction fell to 965,000, the lowest level since March of 1991. Single family homes saw a 2.9% decline from the month to an annual rate of 641,000, the lowest since January of 1991.The housing market is not out of the dark yet. Single housing starts continue its relentless contraction and has dropped from an annual pace of 1,055K units in July 2007, to the current 641K. a 39.2% decline.

From the Release: "Privately-owned housing starts in July were at a seasonally adjusted annual rate of 965,000. This is 11.0 percent (±9.0%) below the revised June estimate of 1,084,000 and is 29.6 percent (±5.1%) below the revised July 2007 rate of 1,371,000. Single-family housing starts in July were at a rate of 641,000; this is 2.9 percent (±10.9%)* below the June figure of 660,000. The July rate for units in buildings with five units or more was 309,000."

Annual Pace For June
Provided by: Department of Commerce

Housing Starts m/m: 9.1%, pr. -2.7% (R from -3.3%) (May), 8.2% (Apr), -11.9% (Mar)

US housing starts, the number of new homes being constructed, surprisingly surged in June, increasing to an annual pace of 1.07 million units. Thats a 9.1% increase compared to May, and caught forecasts completly off guard. However, the data seems skewed by a new set of construction codes in New York City which inflated the number for the Northeast region. Excluding the Northeast, housing starts fell 4% in June. Most of these new starts in NYC were led by apartment building and condos - multifamily starts surged 43%, while singl-family homes fell to their slowest pace in 17 years. 

The climate in the housing sector remains pressured by multiple factors including a soft job market, a credit crunch, fading consumer confidence, high oil prices, and high level of unsold homes that is depressing prices. Those conditions have not changed and so this number is most likely an aberration from the prevailing trend.

Annual Pace For May
Provided by: Department of Commerce

Housing Starts m/m: -3.3%, pr. 8.2%, -11.9% (Mar), -0.7% (Feb)

Housing starts fell 3.3% to an annual pace of 975,000 from a revised 1.008 million in April. The reading was below forecasts and hits a new 17 year low. The housing market is dealing with excess supply as rising foreclosures, higher mortgage rates and declining property values create a glut of unsold homes. A reduction in housing starts may help to stabilize prices, as extra supply in the form of new construction would only add to extra supply. Building permits were down 1.3% percent, a sign that future construction will be weaker as well.

Lower starts however will cause the hard times in the construction sector to continue and will impact GDP in a negative way. Starts have dropped 32% since May 2007, which has been one of hte major drags on growth in the US economy. 

Annual Pace For April
Provided by: Department of Commerce

Housing Starts m/m: 8.2%, forecast -1.4%, pr. -11.9% (Mar), -0.7% (Feb)

Housing starts surprised on the upside for April, increasing to an annual pace of 1.03 million. This was a 8.2% increase on the previous month. Looking closer at the data, it shows that builders broke ground on 692,000 single-family homes at an annual rate, which is the fewest since January 1991. Construction of multifamily units rose 36% compared to a drop of 35% in March, so much of the increase was due to condominium and apt construction.

Building permits, a leading indicator towards future construction, rose 978K, reflecting an increase in both single and multi-family units.

Annual Pace For March
Provided by: Department of Commerce

Housing Starts m/m: -11.9%, forecast -6.1%, pr. -0.7%

Housing starts slipped more than expected falling to an annualized pace of 947,000. The fall was steeper than expected and means the housing market is still receding and has not hit bottom. It was the lowest level in 17 years, and showed that February's mild decrease was not an indication of the market stabilizing. Building permits declined 5.8%, also more than expected.

With foreclosures adding extra supply of unsold homes and driving down value of houses, new construction suffers and will continue to be a drag on the economy. Housing starts are expected to fall 30% this year the National Association of Home Builders forecast yesterday. Weaker housing starts will hurt in other ways as construction jobs decline, and prices of construction materials, appliances and furnishing to fall hurting those businesses.

Annual Pace For February
Provided by: Department of Commerce

Housing starts dropped in February from January's revised figures. Builders broke ground on 1.065 million homes at an annual pace, down 0.6% from the revised 1.071 million pace in January. The results beat expectations, though building permits, a leading indicator of housing construction declined another 7.8% to the slowest pace in 16 years. It may still be a while before the housing recession bottoms out as prices of homes continue to fall, and lending is harder to come by. The Fed will do all it can, but cutting rates later today, but the results will not be immediately felt in housing.