US Housing Starts Fall 9.8% in January; Permits Hold Steady and Completions Rise

On Wednesday, the US Census Bureau reported that privately‐owned housing starts in January were at a seasonally adjusted annual rate of 1,366,000. This is 9.8% below the revised December estimate of 1,515,000 and 0.7% below the January 2024 rate of 1,376,000. Single-family housing starts were at a rate of 993,000; this is 8.4% below the revised December figure of 1,084,000. The rate for units in buildings with five units or more was 355,000.

Building permits are the forward-looking portion of the report. In January, privately-owned housing units authorized by building permits were at a seasonally adjusted annual rate of 1,483,000. This is 0.1% above the revised December rate of 1,482,000 but 1.7% below the January 2024 rate of 1,508,000. Single-family authorizations were at a rate of 996,000; this is virtually unchanged from the revised December figure of 996,000. The rate for units in buildings with five units or more was 427,000.

Privately‐owned housing completions in January were at a seasonally adjusted annual rate of 1,651,000. This is 7.6% above the revised December estimate of 1,534,000 and 9.8% above the January 2024 rate of 1,504,000. Single-family completions were at a rate of 982,000; this is 7.1% above the revised December rate of 917,000. The rate for units in buildings with five units or more was 652,000.