by Year-over-year increase in home completions and permits issued signals potential rebound in new construction
WASHINGTON — U.S. housing starts fell in January compared to the year before, while building permits and housing completions rose, signaling a potential rebound in the construction of homes that will need new furniture.
Figures released by the U.S. Department of Commerce Friday showed that housing starts — which mark the beginning of construction on a new residential property — totaled 1,331,000, down .7% from 1,340,000 in January 2023.
The number of building permits issued totaled 1,470,000, up 8.6% above the revised January 2023 rate of 1,354,000. In January, there also were 1,416,000 housing completions, up 2.8% above 1,377,000 in January 2023.
While somewhat mixed, the numbers do show some positive traction that should create a sense of optimism among retailers looking to sell furniture to consumers moving into those homes.
At the same time, housing starts, building permits and housing completions all fell from December, highlighting what may be perceived as a typical slowdown in early-winter home-building activity.
For example, January housing starts fell 14.8% from a revised December estimate of 1,562,000 with single-family housing starts totaling 1,004,000, or 4.7% below a revised December estimate of 1,054,000.
January building permits were 1.5% below a revised December estimate of 1,493,000 and single-family authorizations totaled 1,015,000, or 1.6% above the revised December estimate of 999,000.
January housing completions were 8.1% below a revised December estimate of 1,541,000 and single-family completions totaled 857,000, or 16.3% below a revised December estimate of 1,024,000.
By region, the activity was as follows:
In the Northeast, building permits totaled 117,000, up 4.5% from the 112,000 issued in January 2023 and up 19.4% from the 98,000 issued in December. Housing starts totaled 104,000 in January, down 18.8% from the 128,000 started in January 2023 and down 20.6% from the 131,000 started in December. There were 102,000 residential units completed in January, down 2.9% from the 105,000 completed in January 2023 and down 26.6% from the 139,000 completed in December.
In the Midwest, there were 210,000 building permits issued in January, up 18% from the 178,000 issued in January 2023 and up 6.6% from the 197,000 issued in December. There were 142,000 units started in January, up 10.9% from the 128,000 started in January 2023 and down 30% from the 203,000 started in December. There were 172,000 units completed in January, down 5.5% from the 182,000 completed January 2023 and down 14.9% from the 202,000 completed in December.
In the South, there were 800,000 building permits issued in January, up 3.9% from the 770,000 issued in January 2023 and down 7% from the 860,000 issued in December. There were 753,000 units started in January, down 4.2% from the 786,000 started in January 2023 and down 9.7% from the 834,000 started in December. There were 803,000 units completed in the region, up 8.8% from the 738,000 completed in January 2023 and down 8.2% from the 875,000 completed in December.
In the West, there were 343,000 residential building permits issued in January, up 16.7% from the 294,000 issued in January 2023 and up 1.5% from the 338,000 issued in December. There were 332,000 units started in January, up 11.4% from the 298,000 started in January 2023 and down 15.7% from the 394,000 started in December. There were 339,000 units completed in the region in January, down 3.7% from the 352,000 completed in January 2023 and up 4.3% from the 325,000 completed in December.
