AT HOME with Concrete - 12/13/2007 (Plain Text Version)

CHBC Chairman
Michael Weber

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In this issue:
Award Deadline for Young System Builders Dec. 15
Free Builders’ Show Lunch Focuses on Concrete
Economy’s Fate in Fed’s Hands, PCA Economist Warns
Increase In Multifamily Construction Lifts Total Housing Starts
NAHB Green Building Standard Public Comment Period
Register for NAHB's Train the Trainer Jan. 21
Take the Concrete Techonology Tour Survey
WOC Excitement Builds for CHBC
Education Boosts Opportunities
CHBC Calendar of Events

Increase In Multifamily Construction Lifts Total Housing Starts

A bounce-back in the volatile multifamily market lifted total housing starts 3.0 percent in October to a seasonally adjusted annual rate of 1.229 million units as the downswing in the single-family housing market continued, according to figures released by the Commerce Department today. Total starts were down 16.4 percent from a year earlier.

Single-family housing starts dropped 7.3 percent for the month to a seasonally adjusted annual rate of 884,000 units, the lowest monthly production rate since October 1991 and 25.1 percent below October 2006.

“Builders continue to do what they absolutely have to do in this market downturn. They are repositioning themselves for the market’s eventual recovery by cutting back on production and working down their inventories,” said Brian Catalde, president of the National Association of Home Builders (NAHB) and a home builder from El Segundo, Calif.

“The large October bounce-back in multifamily starts reflected typical month-to-month volatility, while the pattern of multifamily permits shows that this sector is gradually losing momentum,” said NAHB Chief Economist David Seiders. “The large declines in single-family starts and permits clearly show that this component of the housing market still is weakening seriously.”

Multifamily housing starts rose 44.4 percent to a seasonally adjusted annual rate of 345,000 units in October after dropping 35.9 percent to a 239,000-unit pace the month before. The pace of multifamily construction was 19.4 percent above October 2006.

In another indication that builders are repositioning themselves, total building permits were down 6.6 percent in October to a seasonally adjusted annual pace of 1.178 million units. Total permits were down 24.5 percent from a year earlier.

Single-family permit issuance was down 8.0 percent to a pace of 807,000 units for the month, the lowest pace since November 1991 and 31.0 percent below October 2006.

The rate of multifamily permit issuance was down 3.4 percent to 371,000 units for the month. The pace was 4.9 percent below a year earlier.

Regionally, starts of new homes and apartments were up in the Northeast, Midwest and West by 8.5 percent, 21.1 percent and 5.8 percent, respectively. Housing starts were down in the South by 4.6 percent.