Key Points
- Building permits in December surpassed expectations with a 1.9% increase over November.
- Housing starts recorded a 4.3% decline in December, although they remained 7.6% higher than December 2022.
- Despite a decrease in housing starts, building permits outperformed forecasts, indicating resilience in the housing market.
Building Permits
In December, privately-owned housing units authorized by building permits reached a seasonally adjusted annual rate of 1,495,000, surpassing November’s rate by 1.9%. This figure is also 6.1% higher than December 2022. Specifically, single-family authorizations in December stood at 994,000, marking a 1.7% increase from November. Meanwhile, authorizations for units in buildings with five units or more were at a rate of 449,000 in December.
However, in the broader context of 2023, an estimated 1,469,800 housing units were authorized by building permits, representing an 11.7% decrease compared to 2022.
Housing Starts
December saw privately-owned housing starts at a seasonally adjusted annual rate of 1,460,000. This figure reflects a 4.3% decrease from November but remains 7.6% higher than December 2022. Single-family housing starts in December were at a rate of 1,027,000, indicating an 8.6% decline from November. In contrast, units in buildings with five units or more had a December rate of 417,000.
For the entirety of 2023, an estimated 1,413,100 housing units were initiated, representing a 9.0% decrease compared to 2022.
Housing Completions
December recorded privately-owned housing completions at a seasonally adjusted annual rate of 1,574,000, marking an 8.7% increase from November and a substantial 13.2% rise from December 2022. In particular, single-family housing completions in December reached 1,056,000, up by 8.4% from November. Meanwhile, units in buildings with five units or more had a December rate of 509,000.
In the full year of 2023, an estimated 1,452,500 housing units were completed, indicating a 4.5% increase compared to 2022.
Short-Term Forecast:
The data suggests mixed trends, with increased building permits but decreased housing starts. However, they were both higher than the estimates. The completion rate is notably higher, indicating potential opportunities in the housing market. This complex landscape warrants careful monitoring for investors and industry stakeholders.
This article was originally posted on FX Empire
More From FXEMPIRE:
- AUD to USD Forecast: China, US Consumer Sentiment, and the Fed in Focus
- S&P 500 Price Forecast – Wall Street Continues to Follow Interest Rates
- Crypto News Today: BTC Visits Sub-$41,000 for the First Time Since ETF Approvals
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
