U.S. Residential Construction Market, despite economic uncertainties is robust. The January 2023 statistics for new residential construction in the US indicate a mixed picture. While building permits for privately-owned housing units increased slightly from December 2022, they were still 27.3% lower than the rate for January 2022. Similarly, housing starts in January 2023 were down 21.4% compared to the same month the previous year. However, housing completions were up 12.8% from January 2022.
The U.S. Census Bureau and the U.S. Department of Housing and Urban Development recently released their joint report on new residential construction statistics for January 2023. The report covers various aspects of the U.S. residential construction market, including building permits, housing starts, and housing completions. In this article, we will delve into the details of the report and analyze what the statistics reveal about the state of the residential construction market.
Building Permits
Building permits refer to privately-owned housing units authorized for construction. In January 2023, the seasonally adjusted annual rate of building permits stood at 1,339,000, which is a marginal increase of 0.1% from the revised December rate of 1,337,000. However, this rate is significantly lower than the January 2022 rate of 1,841,000, showing a decline of 27.3%.
Single-family authorizations, which pertain to the construction of standalone houses, fell by 1.8% in January, with a rate of 718,000. On the other hand, authorizations of units in buildings with five units or more were at a rate of 563,000 in January.
Housing Starts
Housing starts refer to the commencement of construction work on new privately-owned housing units. The seasonally adjusted annual rate of housing starts in January was 1,309,000, showing a decline of 4.5% (±15.9 percent)* from the revised December estimate of 1,371,000. Additionally, this rate is 21.4% (±10.6 percent) lower than the January 2022 rate of 1,666,000.
The rate of single-family housing starts in January was 841,000, showing a decline of 4.3% (±16.4 percent)* from the revised December figure of 879,000. The January rate for units in buildings with five units or more was 457,000.
Housing Completions
Housing completions refer to the finalization of construction work on new privately-owned housing units. In January, the seasonally adjusted annual rate of housing completions was 1,406,000, which is 1.0% (±9.8 percent)* higher than the revised December estimate of 1,392,000. Compared to the January 2022 rate of 1,247,000, the rate of housing completions showed an increase of 12.8% (±13.0 percent).
The rate of single-family housing completions in January was 1,040,000, showing an increase of 4.4% (±10.4 percent)* from the revised December rate of 996,000. The January rate for units in buildings with five units or more was 349,000.
The statistics released by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development provide an insight into the state of new residential construction in the United States for January 2023. These statistics show that the number of privately-owned housing units authorized by building permits in January 2023 was at a seasonally adjusted annual rate of 1,339,000, a slight increase of 0.1 percent compared to the revised December rate of 1,337,000. However, this figure represents a significant decline of 27.3 percent compared to the January 2022 rate of 1,841,000.
Single-family authorizations in January were at a rate of 718,000, which is 1.8 percent below the revised December figure of 731,000. Meanwhile, authorizations of units in buildings with five or more units were at a rate of 563,000 in January.
Single-family housing starts in January were at a rate of 841,000, which is 4.3 percent (±16.4 percent) below the revised December figure of 879,000. The January rate for units in buildings with five or more units was 457,000.
Single-family housing completions in January were at a rate of 1,040,000, which is an increase of 4.4 percent (±10.4 percent) compared to the revised December rate of 996,000. The January rate for units in buildings with five or more units was 349,000.
Privately-owned housing starts in January were at a seasonally adjusted annual rate of 1,309,000, which is a decline of 4.5 percent (±15.9 percent) compared to the revised December estimate of 1,371,000. This figure also represents a decline of 21.4 percent (±10.6 percent) compared to the January 2022 rate of 1,666,000.
Privately-owned housing completions in January were at a seasonally adjusted annual rate of 1,406,000, representing an increase of 1.0 percent (±9.8 percent) compared to the revised December estimate of 1,392,000. This figure also represents an increase of 12.8 percent (±13.0 percent) compared to the January 2022 rate of 1,247,000.
It’s important to note that month-to-month changes in seasonally adjusted statistics can often show irregular movements, and it may take time to establish an underlying trend. Building permit authorizations typically take three months to establish an underlying