Privately owned housing starts in January were at a seasonally adjusted annual rate of 1,638,000, which is 4.1% below the revised December estimate of 1,708,000 but 0.8% above the January 2021 rate of 1,625,000, according to the U.S. Census Bureau and the Department of Housing and Urban Development.
Single‐family housing starts in January were at a rate of 1,116,000, or 5.6% below the revised December figure of 1,182,000. The January rate for units in buildings with five units or more was 510,000.
“Today’s new residential construction report from the Census Bureau pointed toward new-home construction’s resiliency thus far in light of rising mortgage rates,” says Doug Duncan, chief economist at Fannie Mae.
Housing units authorized by building permits in January were at a seasonally adjusted annual rate of 1,899,000, which is 0.7% above the revised December rate of 1,885,000 and 0.8% above the January 2021 rate of 1,883,000. Single‐family authorizations last month were at a rate of 1,205,000, or 6.8% above the revised December figure of 1,128,000. Authorizations of units in buildings with five units or more were at a rate of 629,000.
January’s housing completions were at a seasonally adjusted annual rate of 1,246,000, which is 5.2% below the revised December estimate of 1,315,000 and 6.2% below the January 2021 rate of 1,328,000. Single‐family housing completions last month were at a rate of 927,000, or 7.3% below the revised December rate of 1,000,000. The January rate for units in buildings with five units or more was 309,000.
“January data likely does not reflect the full impact of recent mortgage rate increases,” continues Duncan. “However, consistent with ongoing strong home builder sentiment survey readings, we see this initial strength in construction permits as a sign that demand for new homes remains strong given the lack of existing inventory available for sale.”
