Steel Markets
January Housing Permits Suggest Strong Start for 2020
Written by Sandy Williams
February 19, 2020
Housing starts slowed in January but remained at a solid pace, while building permits surged to a 13-year high.
January starts were down 3.6 percent from December to an adjusted annual rate of 1,567,000, but were 21.4 percent higher than a year ago.
Construction starts for single-family homes fell 5.9 percent compared to December. Multi-family residences of five units or more gained 3.0 percent.
“The housing recovery continues, as single-family housing starts have surpassed one million for the second consecutive month and multifamily production has been running above 500,000 for the same period,” said NAHB Chairman Dean Mon, a home builder and developer from Shrewsbury, N.J. “Meanwhile, builder confidence remains solid as demand continues to pick up.”
Construction in the Northeast was strongest, gaining 31.9 percent in January followed by a gain of 1.2 percent in the West. Winter weather stalled construction in the Midwest, falling 25.9 percent, and starts in the South were down 5.4 percent.
Permit authorizations, a predictor of future construction, were 19.2 percent higher than December and 18.9 percent above the January 2019 rate. Building permits were at a seasonally adjusted annual rate of 1,551,000. Authorizations for single-family homes grew 6.4 percent last month, while multi-unit permit authorizations increased 15.2 percent compared to December.
“While the solid pace for residential construction continues, favorable weather conditions may have accelerated production in the winter months,” said Nanayakkara-Skillington, NAHB’s Assistant Vice President of Forecasting and Analysis. “At the same time, the growth in permits is a harbinger that that market will continue to move forward in the coming months, even as builders grapple with supply-side issues like excessive regulations, labor shortages and rising material costs.”
Permit authorizations soared 34.6 percent in the Northeast, followed by gains of 8.2 percent in the Midwest, 8.0 percent in the South and 3.1 percent in the West.
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.