–1-Family Starts +11%; Overall Strength, Only NE Region at -5.1%
By Joseph Plocek
WASHINGTON (MNI) – The U.S. September housing starts data were
uniformly good, suggesting the key construction sector is recovering at
a faster clip.
September housing starts surprised at +15% to 872,000 units, their
highest level since July 2008 and about 100,000 more than expected.
August starts were revised slightly higher.
Permits printed +11.6% to 894,000, confirming the strength.
Single-family starts, the key to the market, jumped 11% to 603,000.
Multi-family units rose 25%.
The only “problem” in the data was the Northeast region, where
starts were weak at -5.1% overall on the back of dips in both singles
and multis. Starts in the Northeast had jumped in July but then
retreated in summer.
There was no apparent hurricane impact as housing activity in the
South, the largest region, advanced, with starts up 19.9%. Starts in the
Midwest were up 6.7% and in the West up 20.1%.
Permits gained in most areas and most sectors; an exception was
-3.7% in 2-4-unit overall permits, and even this area merely is pausing
at a higher level.
These data show unmitigated strength, with a 4.8% decline in units
authorized but not started also suggesting gains ahead. Total units
completed were up just 0.4%, which indicates there may need to hire
construction workers to adjust housing higher and meet the permits
numbers.
Even with all this good news recall that single family starts
peaked at 1.8 million units in January 2006, about three times where
they stand currently. The housing market still has a long way to go to
achieve that sort of lift-off once again.
**MNI Washington Bureau: (202)371-2121**
[TOPICS: MAUDS$,M$U$$$,MT$$$$,MAUDR$]
