US Housing Starts Fall in December, While Permits and Completions Climb

On Thursday, the US Census Bureau reported that privately‐owned housing starts in December were at a seasonally adjusted annual rate (SAAR) of 1,460,000. This is 4.3% below the revised November estimate of 1,525,000 but 7.6% above the December 2022 rate of 1,357,000. Single-family housing starts were at a rate of 1,027,000; this is 8.6% below the revised November figure of 1,124,000. The rate for units in buildings with five units or more was 417,000.

An estimated 1,413,000 housing units were started in 2023, a 9.0% decline from 1,552,600 units in 2022.

Building permits are the forward-looking portion of the report, and in December privately-owned housing units authorized by building permits were at a SAAR of 1,495,000. This is 1.9% above the revised November rate of 1,467,000 and 6.1% above the December 2022 rate of 1,409,000. Single-family authorizations were at a rate of 994,000; this is 1.7% above the revised November figure of 977,000. Authorizations of units in buildings with five units or more were at a rate of 449,000.

An estimated 1,469,800 housing units were authorized by building permits in 2023, an 11.7% decline from 1,665,100 units in 2022.

Privately‐owned housing completions in December were at a seasonally adjusted annual rate of 1,574,000. This is 8.7% above the revised November estimate of 1,448,000 and 13.2% above the December 2022 rate of 1,390,000. Single‐family housing completions were at a rate of 1,056,000; this is 8.4% above the revised November rate of 974,000. The rate for units in buildings with five units or more was 509,000.

An estimated 1,452,500 housing units were completed in 2023, a 4.5% increase from 1,390,500 units in 2022.