Housing Starts – October 2014

StartsIntentQ32014NSA quarterly intent for four start categories since  1975: single family built for sale, owner built (includes contractor built for  owner), starts built for rent, and condos built for sale.
Single family starts built for sale were up about 4% compared to  Q3 2013.
Owner built starts were up 20% year-over-year.  And condos  built for sale are just above the record low.
The ‘units built for  rent’ has increased significantly and is at the highest level since the mid-80s.

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.

Multifamily starts swung sharply-dropping a monthly 15.4 percent in October, following a 14.9 percent surge the month before.  Single-family starts gained 4.2 percent in both October and September.

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.  Analysts projected 1.035 million units.

Multifamily permits jumped 10.0 percent in October, following a 6.4 percent gain in September.  Single-family permits rose somewhat with a 1.4 percent increase after a 0.6 percent rise in September.

 

By | 2014-11-20T15:51:38+00:00 November 20th, 2014|Categories: Economics, Leading|0 Comments

About the Author:

Bryan Sanford is Vice President and Investment Officer of Charter Trust Company. He joined the firm in 2009 and is based in our Concord NH office. Mr. Sanford received his Bachelors of Science degree from the University of New Hampshire, Durham. Mr. Sanford has held the FINRA Series 7 license. Prior to joining Charter Trust, Mr. Sanford served in the United States Marine Corps as an infantryman. He participated in Operation Iraqi Freedom, touring in Fallujah, Iraq.

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