“Housing starts surged 15.8% in December, beating forecasts, while permits rose modestly. Builders signal optimism as completions slow.”, — write: www.fxempire.com
Single-family starts showed modest growth at 1.05 million, rising 3.3% month-over-month, while multifamily starts came in at 418,000. For the entirety of 2024, housing starts totaled 1.364 million, a 3.9% decline from 2023.
Housing Completions Decline Month-over-Month Housing completions in December dropped to an annual rate of 1.544 million, down 4.8% from November’s revised estimate of 1.621 million. This figure is also 0.8% lower year-over-year compared to December 2023’s 1.557 million.
Single-family completions fell 7.4% month-over-month, totaling 948,000, while multifamily completions were recorded at 570,000. Despite the monthly slowdown, annual completions for 2024 were 1.627 million, representing a 12.3% increase from 2023 as builders cleared backlogs.
Market Implications and Forecast The December housing data presents a mixed outlook for traders. While building permits and housing starts beat expectations, the decline in housing completions—especially single-family units—signals potential bottlenecks in the construction process.
Short-term prospects remain cautiously bullish, with robust housing starts suggesting optimism among builders, while single-family permits indicate ongoing demand. Traders should watch for further clarity in January’s data to confirm sustained momentum in the residential construction sector.