{"id":48833,"date":"2017-01-19T19:13:50","date_gmt":"2017-01-20T01:13:50","guid":{"rendered":"http:\/\/news.medill.northwestern.edu\/chicago\/?p=48833"},"modified":"2017-01-19T19:13:50","modified_gmt":"2017-01-20T01:13:50","slug":"u-s-housing-starts-surge-in-december","status":"publish","type":"post","link":"https:\/\/news.medill.northwestern.edu\/chicago\/u-s-housing-starts-surge-in-december\/","title":{"rendered":"U.S. housing starts surge in December"},"content":{"rendered":"<p><strong> By Mindy Tan <\/strong><\/p>\n<p class=\"dropcap\">The pace of homebuilding rebounded in December and surpassed analyst estimates, driven by multi-family units. <\/p>\n<p> Privately-owned housing starts rose 11.3 percent to a seasonally adjusted annual rate of 1.23 million compared with the revised November annual rate of 1.10 million, stated the U.S. Department of Housing and Urban Development in a release on Thursday.<\/p>\n<p> The average estimate compiled by Bloomberg was 1.19 million. <\/p>\n<p><!--more--><\/p>\n<p>This was entirely driven by the 53.9 percent jump in the annual rate for units in buildings with five units or more, to 417,000. Single-family housing starts, which account for the largest share of the residential housing market, dropped 4 percent to 795,000. <\/p>\n<p>&#8220;Single-family starts have been above the pace implied by permits, while multi-family have been overshooting; now both are in line, more or less,&#8221; Ian Shepherdson, chief economist at Pantheon Macroeconomics, stated in a report. <\/p>\n<p>&#8220;We&#8217;re expecting no significant further increase in the overall numbers over the next few months, given the soft trend in mortgage applications,&#8221; he added. <\/p>\n<p>The mix of construction has been generally shifting toward single-family building, wrote Brian Wesbury, chief economist at First Trust Advisors, in a report. <\/p>\n<p>&#8220;When the housing recovery started,&#8221; he stated, &#8220;multi-family construction led the way. But the share of all housing starts that are multi-family appears to have peaked in 2015, when 35.7 percent of all starts were multi-family, the largest since the mid-1980s, when the last wave of Baby Boomers was growing up and moving to cities. In 2016, the multi-family share of starts fell to 32.9 percent.&#8221; <\/p>\n<p>The shift to single-family units is a positive sign, as on average each single-family home contributes to GDP about twice the amount of a multi-family unit, said Wesbury. He added he expects housing starts to rise to about 1.5 million units per year based on population growth and &#8220;scrappage&#8221; of old homes.<\/p>\n<p> Building permits for privately-owned housing units dipped 0.2 percent to a seasonally adjusted annualized rate of 1.21 million, below the revised November annualized rate of 1.212 million. <\/p>\n<p>Single-family authorizations in December were at an annual rate of 817,000. This is a 4.7 percent increase above the revised November figure of 780,000. Authorization of units in buildings with five units or more were at an annual rate of 355,000 in December, a decrease of 10.1 percent from the revised November estimate of 395,000. <\/p>\n<p>Neil Shankar, an economist at TD Economics, part of TD Bank Group, stated in a report that the continuing rise of single-family permitting for five consecutive months suggests that construction in that segment should improve in the coming months.  <\/p>\n<p> &#8220;Demand for single family homes will continue to increase alongside a tighter labor market, rising wages, and a rebound in household formation,&#8221; said Shankar. &#8220;While the recent spike in rates poses some downside risk to our outlook for housing demand and construction, these factors should provide enough of an offset to keep homebuilding on a positive course.&#8221;    <\/p>\n<div class=\"featurecaption\">Photo at top: Construction of The Vista Tower, in downtown Chicago, which will include more than 400 condominiums. (Mindy Tan\/MEDILL)<\/div>\n<p>a<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Mindy Tan The pace of homebuilding rebounded in December and surpassed analyst estimates, driven by multi-family units. Privately-owned housing starts rose 11.3 percent to a seasonally adjusted annual rate of 1.23 million compared with the revised November annual rate of 1.10 million, stated the U.S. Department of Housing and Urban Development in a release [&hellip;]<\/p>\n","protected":false},"author":368,"featured_media":48835,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3516],"tags":[],"class_list":["post-48833","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-winter-2017"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>U.S. housing starts surge in December - Medill Reports Chicago<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/news.medill.northwestern.edu\/chicago\/u-s-housing-starts-surge-in-december\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"U.S. housing starts surge in December - Medill Reports Chicago\" \/>\n<meta property=\"og:description\" content=\"By Mindy Tan The pace of homebuilding rebounded in December and surpassed analyst estimates, driven by multi-family units. Privately-owned housing starts rose 11.3 percent to a seasonally adjusted annual rate of 1.23 million compared with the revised November annual rate of 1.10 million, stated the U.S. Department of Housing and Urban Development in a release [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/news.medill.northwestern.edu\/chicago\/u-s-housing-starts-surge-in-december\/\" \/>\n<meta property=\"og:site_name\" content=\"Medill Reports Chicago\" \/>\n<meta property=\"article:published_time\" content=\"2017-01-20T01:13:50+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/s3.amazonaws.com\/medill.wordpress.offload\/WP%20Media%20Folder%20-%20medill-reports-chicago\/wp-content\/uploads\/sites\/3\/2017\/01\/20170117-Construction-II-WEB.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1100\" \/>\n\t<meta property=\"og:image:height\" content=\"825\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"mindytan2017\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mindytan2017\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/news.medill.northwestern.edu\/chicago\/u-s-housing-starts-surge-in-december\/\",\"url\":\"https:\/\/news.medill.northwestern.edu\/chicago\/u-s-housing-starts-surge-in-december\/\",\"name\":\"U.S. housing starts surge in December - 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