New Residential Construction: Housing Starts, Building Permits Cool in February

The U.S. Census Bureau report on new residential construction statistics for February show housing starts and building permits missed expectations, though housing completions were very strong.

Building Permits

Privately-owned housing units authorized by building permits in February were at a seasonally adjusted annual rate of 1,298,000, a 5.7% (±0.7%) decline from the revised January rate of 1,377,000. However, it is still 6.5% (±2.4%) higher than the February 2017 rate of 1,219,000.

Single-family authorizations in February were at a rate of 872,000, a 0.6% (±0.9%) decline from the revised January figure of 877,000. Authorizations of units in buildings with five units or more were at a rate of 385,000 in February.

Housing Starts

Privately-owned housing starts in February were at a seasonally adjusted annual rate of 1,236,000, a 7.0% (±16.7%) drop from the revised January estimate of 1,329,000. It is also 4.0% (±12.2%) below the February 2017 rate of 1,288,000. Yet, single-family housing starts, the key component in this report, were at a rate of 902,000 in February.

This is 2.9% (±10.8%) above the revised January figure of 877,000. The February rate for units in buildings with five units or more was 317,000.

Housing Completions

Privately-owned housing completions in February were at a seasonally adjusted annual rate of 1,319,000, a 7.8% (±14.8%) gain from the revised January estimate of 1,224,000 and a 13.6% (±16.0%)* gain from the February 2017 rate of 1,161,000. That is very strong for this component.

Single-family housing completions in February were at a rate of 895,000, an increase of 3.0% (±10.6%) from the revised January rate of 869,000. The February rate for units in buildings with five units or more was 418,000.