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

New residential homes are shown under construction in Carlsbad, California September 19, 2011. (Photo: Reuters)

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.