Midwest Pushes Housing Starts Down 2 Percent in January
February 18, 2015 – Nationwide [glossary]housing starts[/glossary] fell 2 percent to a seasonally adjusted annual rate of 1.065 million units in January, according to newly released data from the U.S. Commerce Department. This drop was mainly due to a 22.2 percent decrease in the Midwest.
Single-family housing production fell 6.7 percent to a seasonally adjusted annual rate of 678,000 in January while multifamily starts rose 7.5 percent to 387,000 units.
“These numbers are consistent with our recent surveys and are primarily due to severe weather hitting the Midwest and other parts of the country,” said [glossary]NAHB[/glossary] Chairman Tom Woods, a home builder from Blue Springs, Mo.
“After a strong single-family report in December, it is not surprising to see some pull back in January,” said [glossary]NAHB[/glossary] Chief Economist David Crowe. “With continued job creation and a growing economy, single-family production should make gains in the year ahead.”
Regionally in January, combined single- and multifamily housing production increased 6.5 percent in the South. Total starts fell in the Northeast, Midwest and West, with respective losses of 3.5 percent, 22.2 percent and 3.4 percent.
Overall permit issuance was down 0.7 percent in January to a rate of 1.053 million. Single-family permits decreased 3.1 percent to 654,000 units while multifamily permits rose 3.6 percent to a rate of 399,000 units.
Regionally, permits were mixed in January. The Northeast and West registered gains of 29.5 percent and 16.8 percent, respectively, while the Midwest and South dropped 16 percent and 8.7 percent, respectively.