SF Housing Starts Up 2.1%

Single-family housing starts rose 2.1% in January to start off the new year with the highest number of new homes under construction since 1978.The U.S. Census Bureau reported that single-family starts increased from a seasonally adjusted annual rate of 1.48 million units in December to 1.51 million units in January. Economists at the National Association of Home Builders continue to attribute this strong performance to low interest rates, strong sales of existing homes, and the investment potential of owning a home. Year-end data show that homes built for sale rose to 73.6% of all single-family starts, compared with 72.2% in 2001. It was below 60% in the early 1990s, according to NAHB economist Michael Carliner. This trend reflects the ease with which homebuilders can obtain acquisition, development, and construction financing. The other major share of single-family starts is made up of custom-built homes on the owner's lot. Meanwhile, multifamily starts fell 8.7% from a seasonally adjusted annual rate of 332,000 in December to 303,000 in January.