US Single-Family Building Permits Reach 12-Year High

After a big rebound in October, analysts expected a more mixed picture for November with starts expected to extend gains while permits are seen falling. However, the data was much more positive:

• Housing Starts +3.2% MoM (vs +2.4% exp)

• Building Permits +1.4% MoM (vs expectations of a 3.5% drop)

The second monthly rise in a row…

Source: Bloomberg

Housing Starts rose 13.6% YoY – the most since May 2018…

Single Family Starts accelerated back near cycle highs and multi-family also rose in November.

And single-family permits hit 918k – the highest since August 2007…

Two of four regions posted a gain in starts, led by a jump in the South to the fastest pace since March 2007. Starts in the West also advanced.

All-in-all, very positive – corroborating other housing data, such as Homebuilder sentiment soaring to a 20-year high in December – as long as Powell keeps rates low.

The data indicate residential construction may add to fourth-quarter growth after contributing in the previous quarter for the first time since the end of 2017.