The Commerce Department reported Friday that housing starts in December were at a seasonally adjusted annual rate of 1,608,000, 16.9% above the revised November estimate of 1,375,000 and 40.8% above the December 2018 rate of 1,142,000. The rate eclipsed economist expectations of a pace of 1,375,000.
Single‐family housing starts in December were at a rate of 1,055,000, 11.2% above the revised November figure of 949,000 and 29.6% ahead of a year earlier. The December rate for units in buildings with five units or more was 536,000. An estimated 1,289,800 housing units were started in 2019, 3.2% above the 2018 figure of 1,249,900.
Building permits in December were at a seasonally adjusted annual rate of 1,416,000, 3.9% below the revised November rate of 1,474,000 but 5.8% above the December 2018 rate of 1,339,000.
Single‐family authorizations in December were at a rate of 916,000, 0.5% below the revised November figure of 921,000. Authorizations of units in buildings with five units or more were at a rate of 458,000 in December. An estimated 1,368,800 housing units were authorized by building permits in 2019, 3.9% above the 2018 figure of 1,317,900.
Housing completions in December were at a seasonally adjusted annual rate of 1,277,000, 5.1% above the revised November estimate of 1,215,000 and is 19.6% above the December 2018 rate of 1,068,000.
Single‐family housing completions in December were at a rate of 912,000, 0.7% above the revised November rate of 906,000. The December rate for units in buildings with five units or more was 357,000. An estimated 1,250,600 housing units were completed in 2019, 5.6% above the 2018 figure of 1,184,900.
Mike Fratantoni, chief economist at the Mortgage Bankers Association, reacted: “On a seasonally adjusted basis, housing starts jumped in December to their highest level in 13 years. Surprisingly, single-family starts increased relative to November even on an unadjusted basis – unusual at this time of year – and was driven by a rise in the South. While single-family permits are up almost 11% relative to last year, the level suggests that this jump in starts is unlikely to persist, and we would expect them to return back below 1 million this spring. However, the trend in activity remains quite positive, and as more units are completed, inventories will grow, and this will support a faster pace of home sales in the spring of 2020.”
