Housing Starts Decline 3.7% In November

Dec. 20, 2007
Nationwide housing starts declined 3.7 percent to a seasonally adjusted annual rate of 1.19 million units in November as home builders wisely continued to put the brakes on new-home production, according to newly released data from the U.S. Commerce Department.

Nationwide housing starts declined 3.7 percent to a seasonally adjusted annual rate of 1.19 million units in November as home builders wisely continued to put the brakes on new-home production, according to newly released data from the U.S. Commerce Department.

“The report is consistent with what single-family builders have reported in our recent surveys, and is very much in line with our expectations,” said NAHB Chief Economist David Seiders. “It’s no surprise that builders are starting fewer homes and pulling fewer permits for new home construction at a time when home buyer demand is weak and there’s a heavy supply of vacant homes on the market. We expect the supply-demand balance to improve during the early part of 2008, supporting the early stages of recovery in starts and permits during the second half of next year.”

Single-family housing starts declined 5.4 percent in November to a seasonally adjusted annual rate of 829,000 units, the lowest level since April 1991. Meanwhile, permit issuance for new single-family homes declined 5.6 percent in the month to 764,000 units, their lowest level since June of 1991.

Multifamily housing starts held firm in November, remaining virtually unchanged at a seasonally adjusted annual rate of 358,000 units. Meanwhile, permits for multifamily production rose 7.5 percent to a 388,000-unit rate.

On a regional basis, housing starts in November were down 1.5 percent in the Midwest, 16.3 percent in the Northeast and 6.9 percent in the West. Starts were up 0.3 percent in the South in November, although the region was down 27.4 percent on a year-over-year basis.