Single-Family Home Starts Low in January, Remains Above Last Year’s Rate

Posted February 20, 2024

Housing starts and completions experienced a slowdown in January as more apartment buildings currently occupy the industry. However, single-family building permits and builder confidence steadily increased year-over-year.

Single-family building permits issued in January fell to a seasonally adjusted annual rate (SAAR) of 1,470,000, 1.5 percent below the revised December rate and an 8.6 percent increase year-over-year, according to the U.S. Census Bureau.

Privately owned housing starts in January were at a SAAR of 1,331,000. This is 14.8 percent below the revised December estimate of 1,562,000 and 0.7 percent below the January 2023 rate of 1,340,000. The rate for single‐family housing starts was 1,004,000; this is 4.7 percent below the revised December figure of 1,054,000.

Housing completions in January were at a SAAR of 1,416,000. This is 8.1 percent below the revised December estimate of 1,541,000 but is 2.8 percent above the January 2023 rate of 1,377,000.

While December showed a decline in overall housing starts, single-family starts remain well above last year’s pace, according to Zillow. Coupled with higher building permits, confidence among home builders is increasing too. According to the National Association of Home Builders, the share of builders reporting cutting their prices is falling.