December housing construction activity falters from December 2023

For the full year, housing completions were up 12.4% compared to a year earlier, while the issuing of building permits and housing starts were both down

WASHINGTON — December housing construction activity fell behind similar activity reported in December 2023, according to data released by the U.S. Department of Commerce Friday.

The slowdown affected building permits, housing starts and housing completions in December, while also slowing down from the month of November in all areas except housing starts, which in December rose 15.8% from November.

The number of building permits issued in December totaled 1,483,000, 3.1% below the revised December rate of 1,530,000 and .7% below the revised November rate of 1,493,000. Single-family homes represented 992,000, or 67% of the total, and buildings consisting of five units or more represented the balance. For the full year, there were 1,471,200 building permits issued, down 2.6% from a revised 2023 figure of 1,511,100.

Housing starts totaled 1,499,000 in December, 4.4% below 1,568,000 in December 2023, but up 15.8% above the revised November rate of 1,294,000. Single-family homes represented 1,050,000, or 70% of the total, while units comprising five or more units represented the balance. For the full year, housing starts totaled 1,364,000, down 3.9% from 1,420,000 in 2023.

Housing completions totaled 1,544,000 in December, .8% below 1,557,000 in December 2023 and 4.8% below a revised November estimate of 1,621,000. Single-family homes represented 948,000 or 61.4% of the total with units comprising five or more units representing the balance. For the full year, 1,627,900 housing units were completed, 12.4% above the 1,448,800 completed in 2023.

For the year, the increase in housing completions was a bright spot for the industry as they likely spurred furniture purchases by consumers moving into those new homes. How the year-over-year and monthly slowdowns impact furniture purchases in the months ahead remains to be seen, although many are hoping that the year-over-year retail sales increases that have occurred in the past several months continue into the spring and summer of this year.

By region, activity was as follows:

+ In the Northeast, there were 147,000 residential building permits issued, up 14% from 129,000 issued in December 2023 and up 5% from 140,000 issued in November. There were 157,000 housing units started, up 22.7% from 128,000 issued in December 2023 and up 40.2% from 112,000 issued in November. There were 159,000 housing units completed, up 11.2% from 143,000 in December 2023 and down 15% from 187,000 completed in November.

+ In the Midwest, there were 215,000 residential building permits issued, up 5.9% from 203,000 issued in December 2023 and down 1.4% from 218,000 issued in November. There were 204,000 housing units started, up 1% from 202,000 started in December 2023 and up 20% from 170,000 started in November. There were 208,000 housing units completed, up 2% from 204,000 completed in December 2023 and up 16.9% from 178,000 completed in November.

+ In the South, there were 808,000 residential building permits issued, down 6.5% from 864,000 issued in December 2023 and up 1% from 800,000 issued in November. There were 853,000 housing units started, up .1% from 852,000 started in December 2023 and up 17.7% from 725,000 started in November. There were 738,000 housing units completed, down 16.5% from 884,000 completed in December 2023 and down 17.4% from 893,000 completed in November.

+ In the West, there were 313,000 residential building permits issued, down 6.3% from 334,000 issued in December 2023 and down 6.6% from 335,000 issued in November. There were 285,000 housing units started, down 26.2% from 386,000 started in December 2023 and down .7% from 287,000 started in November. There were 439,000 units completed, up 34.7% from 326,000 in December 2023 and up 20.9% from 363,000 in November.

Thomas Russell

Home News Now Editor-in-Chief Thomas Russell has covered the furniture industry for 25 years at various daily and weekly consumer and trade publications. He can be reached at tom@homenewsnow.com and at 336-508-4616.

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