Housing Starts Moving In Opposite Directions

Housing remains on a flat trajectory. Single-family starts and multifamily starts moved in opposite directions. Housing starts dipped 1.6 percent after rebounding 1.7 percent in October. Analysts projected a 1.038 million pace for November. The 1.028 million unit pace was down 7.0 percent on a year-ago basis.

November strength was in the volatile multifamily component. Multifamily starts rebounded 6.7 percent after declining 9.9 percent in October. In contrast, single-family starts fell 5.4 percent in November after gaining 8.0 percent in October.

Housing permits declined a monthly 5.2 percent, following a 5.9 percent jump in October. The 1.035 million unit pace was down 0.2 percent on a year-ago basis. Market expectations were for 1.060 million units annualized.

Overall, recent housing numbers have oscillated notably. October was relatively good but November was not. On average, housing growth appears to be flat to modestly positive.

Recent History Of This Indicator:
Housing starts in October pointed to an uncertain sector as starts slipped while permits gained. Housing starts numbers continue to oscillate. October weakness was in the multifamily component which swings sharply on a monthly basis. The single-family component may be gaining mild strength. Housing starts declined 2.8 percent after a 7.8 percent spike in September. The 1.009 million unit pace was up 7.8 percent on a year-ago basis. Market expectations were for 1.028 million units. Housing permits, however, showed momentum with a 4.8 percent gain in October after a 2.8 percent boost the month before. The 1.080 million unit pace was up 1.2 percent on a year-ago basis.