US Housing Sector Data for December 2024: Housing Starts Increase, Building Permits Decline
US Department of Commerce announced data on housing starts and building permits in December 2024. Accordingly, the number of new housing starts in December increased by 15.8% compared to the previous month to 1 million 499 thousand. Market expectations were that this figure would be around 1 million 330 thousand.
This increase was recorded as the highest monthly increase since March 2021. In November 2024, the number of new housing starts decreased by 3.7% to 1 million 294 thousand. On an annual basis, the number of new housing starts decreased by 4.4%.
Decline in Construction Permits
On the other hand, the number of building permits issued in December fell by 0.7% mom to 1,483,000. This was slightly below market expectations, as experts had expected building permits to be around 1,460,000. In November 2024, building permits increased by 5.2% to 1,493,000. On an annual basis, building permits decreased by 3.1%.
Market Comments and Expectations
The strong increase in housing starts suggests that the recovery in the construction sector continues. However, the decline in building permits is raising concerns that it could put pressure on future construction activity. Experts pointed out that the decline in building permits, rising construction costs and rising interest rates could lead to some cooling in housing demand.
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