January 19 -
in a negative macro development for the US housing starts grew a less than expected, undermining the the positive home-builder confidence report we saw yesterday’s trading session. Still because of the supply of new homes on the market it’s not necessarily a bad thing that mourn new home constructions are coming onto market. Still this impacts GDP as new homes are counted as residential investment and may hamper hiring in the construction sector.
From Bloomberg: “Builders began work on fewer houses than forecast in December, capping the worst year on record for single-family home construction and signaling recovery in the industry will take time.
Housing starts dropped 4.1 percent to a 657,000 annual rate last month, reflecting a slump in multifamily dwellings, Commerce Department figures showed today in Washington. Building permits, a proxy for future construction, were little changed.
Work on multifamily homes, such as apartments, townhouses and condominiums, fell 20.4 percent to 187,000 in December. Construction on single-unit dwellings increased 4.4 percent to a 470,000 rate in December from the prior month, the highest since April 2010.”