Housing starts slide 8.7 percent in February
Pace declines after January numbers hit a post recession high.
The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly announced the following new residential construction statistics for February 2019:
Building Permits
Privately‐owned housing units authorized by building permits in February were at a seasonally adjusted annual rate of 1,296,000. This is 1.6 percent (±1.2 percent) below the revised January rate of 1,317,000 and is 2.0 percent (±1.7 percent) below the February 2018 rate of 1,323,000.
Single‐family authorizations in February were at a rate of 821,000; this is 0.0 percent (±0.7 percent)* below the revised January figure of 821,000. Authorizations of units in buildings with five units or more were at a rate of 439,000 in February.
Housing Starts
Privately‐owned housing starts in February were at a seasonally adjusted annual rate of 1,162,000. This is 8.7 percent (±10.3 percent)* below the revised January estimate of 1,273,000 and is 9.9 percent (±11.5 percent)* below the February 2018 rate of 1,290,000.
Single‐family housing starts in February were at a rate of 805,000; this is 17.0 percent (±11.2 percent) below the revised January figure of 970,000. The February rate for units in buildings with five units or more was 352,000.
Housing Completions
Privately‐owned housing completions in February were at a seasonally adjusted annual rate of 1,303,000. This is 4.5 percent (±17.8 percent)* above the revised January estimate of 1,247,000 and is 1.1 percent (±18.6 percent)* above the February 2018 rate of 1,289,000.
Single‐family housing completions in February were at a rate of 816,000; this is 10.0 percent (±11.0 percent)* below the revised January rate of 907,000. The February rate for units in buildings with five units or more was 473,000.
The NAHB observes:
“The overall lower starts numbers are somewhat deceiving given the revised single-family starts figure in January was at a post-recession high,” said Danushka Nanayakkara-Skillington, NAHB Assistant Vice President for Forecasting and Analysis. “Absent the surge last month, the drop in single-family production in February is not as huge as it appears. Still, builders continue to remain cautious due to affordability concerns, as illustrated by the flat permits data.”
“The February starts figures are somewhat in line with flat builder expectations and serve as a cautionary note that affordability factors continue to affect the marketplace,” said NAHB Chairman Greg Ugalde. “Excessive regulations, a scarcity of buildable lots, persistent labor shortages and tariffs on lumber and other key building materials are having a negative effect on housing affordability.”
Regionally, combined single-family and multifamily starts in February fell 29.5% in the Northeast, 18.9% in the West and 6.8% in the South. Starts posted a 26.8% increase in the Midwest.
Overall permits, which are often a harbinger of future housing production, edged 1.6% lower in February to 1.30 million units. Single-family permits held steady at 821,000, while multifamily permits fell 4.2% to 475,000.
Looking at regional permit data, permits rose 1.5% in the Northeast, 4% in the South and 1.1% in the Midwest. Permits fell 15% in the West.
Sources: www.census.gov/construction/nrc/; www.nahb.org
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