Steel Markets
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/aaaf0c04d7c5edfc09c6f0e8b5a882b2.jpg)
Housing Construction Ends Year on a High Note
Written by Sandy Williams
January 17, 2020
Housing starts jumped 16.9 percent from November to December to a seasonally adjusted annual rate of 1,608,000. Compared to a year ago starts soared 40.8 percent.
Single-family starts increased 11.2 percent, while construction with five units or more leapt 32 percent. Starts were strongest in the Midwest and Northeast, increasing 37.3 percent and 25.5 percent from November, respectively. Starts in the West were up 19.8 percent and 9.3 percent in the South.
Building permit authorizations, a predictor of future construction, were at a SAAR of 1,416,000 in December. Permits fell 3.9 percent from November’s revised rate, but were up 5.8 percent year-over-year.
Permit authorizations fell 0.5 percent for single-family housing and 11.1 percent for construction of homes of five units or more. Authorizations declined 15.7 percent in the Northeast and 6.5 percent in the South. Starts in the Midwest inched up 0.5 percent and gained 3.8 percent in the West.
In 2019, an estimated 1,289,800 housing units were started, up 3.2 percent from 2018. Building permit authorizations increased 3.9 percent to 1,368,800.
“The year ended on a high note with solid gains in single-family and multifamily production,” said Danushka Nanayakkara-Skillington, NAHB’s Assistant Vice President of Forecasting and Analysis. “And while the December estimates will likely be revised down, the trend moving forward is still positive.”
Builders are expecting a vigorous market for residential construction in 2020. The last two NAHB/Wells Fargo Housing Market Indices posted readings at the highest sentiment levels since July 1999.
“The solid housing production numbers are in line with strong builder sentiment, supported by a low supply of existing homes, low mortgage rates and a strong labor market,” said NAHB Chairman Greg Ugalde. “Low interest rates and a healthy labor market combined with a need for additional inventory are setting the stage for further home building gains in 2020.”
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/04/sandy-williams.jpeg)
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/coils2.png)
US steel imports slipped in August after rising in July
July represents the second-lowest monthly rate for steel imports so far this year.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/steel_trade.png)
CRU Insight: Decarbonization will reshape global steel trade flow
This CRU Insight explores how decarbonization will play a significant role in redefining steel trade patterns by shifting regional competitiveness and increasing steel demand needs.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/price_question.png)
Steel Summit 2024: Leading analysts forecast coming year for steel
Leading industry analysts on Monday discussed steel prices and how they will be impacted by trade policy, consolidation, mill discipline, November’s elections, and more.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/AISI.png)
AISI: Raw steel output jumps, capability surpasses 80%
Having risen for three weeks in a row, weekly production is now at the highest rate seen since February 2023.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/worldsteel_logo.png)
Monthly steel output falls in China, rises in RoW
Global steel output fell 5% in July according to World Steel Association’s (worldsteel) latest release. Total steel mill production around the world tallied up to 152.8 million metric tons (mt) for the month of July, the second-lowest monthly rate seen this year.