US Housing Starts Rise to 9-Year High in October


Housing starts in the United States climbed 25.5 percent from the previous month to a seasonally adjusted annualized rate of 1323 thousand in October 2016, way above market expectations of 1156 thousand. It was the highest reading since August 2007 and the biggest increase since July 1982, as single-family housing starts advanced 10.7 percent and those for the volatile multi-family segment soared 68.8 percent.

Single-family housing starts, the largest segment of the market, rose 10.7 percent to 785 and those for the volatile multi-family segment soared 68.8 percent to 454 thousand, of which for 5 units or more jumped 74.5 percent to 445 thousand. Starts rose in the Northeast (+44.8 percent), in the Midwest (+44.1 percent), in the West (+23.2 percent) and in the South (+17.9 percent).

Building permits rose 0.3 percent to reach a year high of 1229 thousand while markets were expecting a 2.9 percent drop. Single-family permits rose 2.7 percent to 762 thousand while those to 5 units or more fell 1.8 percent to 439 thousand. Increases occured in the Midwest (+12.1 percent) and in the West (+7.5 percent). By contrast, permits decreased in the Northeast (-21.1 percent) and in the South (-2.4 percent).

Year-on-year, housing starts rose 23.3 percent in October and building permits increased 4.6 percent.

US Housing Starts Rise to 9-Year High in October


U.S. Census Bureau | Joana Ferreira | joana.ferreira@tradingeconomics.com
11/17/2016 1:57:26 PM