Steel Markets
Housing Starts Rocket in October led by Multifamily Structures
Written by Sandy Williams
November 17, 2016
Housing starts jumped 25.5 percent in October from September to a seasonally adjusted annual rate of 1,323,000. Starts of multifamily structures of 5 units or more leapt 74.5 percent from the previous month for a rate of 445,000 and were up 28.2 percent year over year. Single family housing starts grew 10.7 percent from September and were up 21.7 percent year over year to a rate of 869,000 units.
Housing starts were especially strong in the Northeast and Midwest with each posting month over month gains of over 44 percent. The West followed with a gain of 23.2 percent and the South gaining 17.9 percent.
“These robust figures correlate with strong builder optimism in the housing market,” said Ed Brady, chairman of the National Association of Home Builders (NAHB). “A firming job market, a growing economy and rising household formations will keep the housing recovery on track into next year.”
“Multifamily production bounced back after an unusually weak reading last month while single-family starts exhibited unusually strong growth as well,” said NAHB Chief Economist Robert Dietz. “Though October’s single- and multifamily production rates are clearly unsustainable, we expect continued growth in the housing sector in the months ahead.”
Permit authorizations, an indicator of future building, were at a seasonally adjusted annual rate of 1,229,000, 0.3 percent above the revised September rate of 1,225,000 and 4.6 percent above the October 2015 estimate of 1,175,000. Single family authorizations, which accounted for approximately 60 percent of permits issued in October, led the increase at a rate of 762,000, with a monthly gain of 2.7 percent and a yearly gain of 5.1 percent. Multifamily authorizations of 5 units or more fell 1.8 percent from September.
The Midwest led in permit authorizations at a monthly increase of 12.1 percent followed by the West with an increase of 7.4 percent. Permit authorizations softened in the Northwest and South.
“Ongoing job creation, rising incomes and attractive mortgage rates are supporting demand in the single-family housing sector. This will help keep housing on a steady, upward glide path in the months ahead,” said NAHB Chief Economist Robert Dietz.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
US importers face stricter rules under revamped S232 tariffs
“CBP expects full compliance from the trade community for accurate reporting and payment of the additional duties. CBP will take enforcement action on non-compliance," the agency said in a March 7 bulletin.
Steel exports rebound in January
US steel exports recovered to a five-month high in January after having fallen to a two-year low in December. This growth follows four consecutive months of declining exports.
Construction spending drops marginally in January
Construction spending edged down slightly in January, slipping for the first time in four months. The US Census Bureau estimated spending at a seasonally adjusted annual rate of $2,196 billion in January, down 0.2% from December’s downward revised rate. The January figure is 3.3% higher than a year ago. January’s result, despite the slight erosion, […]
HVAC equipment shipments slow in December but strong annually
Shipments of heating and cooling equipment in the US fell to an 11-month low in December, according to the latest data released by the Air-Conditioning, Heating, and Refrigeration Institute (AHRI).
Apparent steel supply rebounds in December, but 2024 total at 4-year low
Apparent US steel supply rebounded in December, but 2024 was still the lowest level for supply since 2020.