The monthly
report on new residential construction from the Commerce Department showed on Thursday
that housing starts fell by 4.3 per cent m-o-m in December 2023 to a seasonally
adjusted annual pace of 1.460 million, recording its first drop in four
months,
while building permits increased by 1.9 per cent m-o-m to a seasonally adjusted
annual rate of 1.495 million.
Economists had expected
housing starts to slow to a pace of 1.426 million units last month and building
permits to accelerate to a pace of 1.480
million units.
Data for November
was revised to show homebuilding growing at a pace of 1.525 million units instead
of rising at a rate of 1.560 million units as reported originally.
According to
the report, permits for single-family homes, the largest segment of the market,
rose by 1.7 per cent m-o-m in December, while approvals for the multi-family
homes segment (includes 2 to 4 and 5 or more housing units) jumped by 2.2 per
cent m-o-m.
In the
meantime, groundbreaking on single-family homes plunged by 8.6 per cent m-o-m
in December, while multi-unit starts climbed by 7.5 per cent m-o-m.