Housing Starts and Permits Decline

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From today's Wall Street Journal: http://online.wsj.com/article/SB119798541383736763.html?mod=googlenews_wsj ://http://online.wsj.com/article/SB119...googlenews_wsj

 

Housing Starts, Permits Decline

By TOM BARKLEY

December 18, 2007 10:24 a.m.

 

WASHINGTON -- The pace of groundbreaking for home construction in the U.S. fell in November after rebounding for the first time in four months in October, while building permits slid to the lowest level in 14 1/2 years.

 

Housing starts declined 3.7% to a seasonally adjusted 1.187 million annual rate in November, after rising 4.2% in the previous month to 1.232 million, the Commerce Department said Tuesday. Originally, Commerce reported October starts 3.0% higher at 1.229 million. The decrease was better than market expectations for a 5.7% drop to a 1.16 million annual rate, according to a Dow Jones Newswires survey.

 

Year-to-year, housing starts during November were 24.2% below the level of construction in the same month of 2006.

 

Building permits decreased 1.5% to a 1.152 million annual rate in November, the lowest level since June 1993. Economists had expected permits to edge up 0.5% to a rate of 1.164 million. October permits fell 7.2% to 1.170 million.

 

November single-family housing starts decreased 5.4% to 829,000, the lowest pace since April 1991. Construction of housing with two or more units rose 0.6% to 358,000; within that category, groundbreakings of homes with five or more units -- or multi-family -- were 4.4% higher at 332,000.

 

Regionally, housing starts fell 16.3% in the Northeast, 1.5% in the Midwest and 6.9% in the West. They rose 0.3% in the South.

 

Based on unseasonally adjusted figures, an estimated 88,400 houses were actually started in November nationwide. An estimated 85,000 building permits were issued last month, also based on unadjusted figures.