Housing Bubble
Housing starts rise while building permits fall
The latest release from the Commerce Department's Census Bureau shows privately-owned housing starts in November were at a seasonally adjusted annual rate of 1,697,000. This is 2.4 percent above the revised October estimate of 1,657,000 and is 5.8 percent above the November 2001 rate of 1,604,000. The revised October estimate indicates an 8.4 percent decline for that month rather than the 11.4 percent drop originally reported. The rate for single family housing starts were 0.9 percent above the October figure at 1,390,000, while starts on multifamily units or apartment buildings increased by 12.6 percent in November to a 278,000 annual rate.
Regional variations indicated that starts rose by 10.9 percent in the Midwest and 10.1 percent in the South, but fell 5.6 percent in the Northeast and 11.9 percent in the West.
Building permits in November were at a seasonally adjusted annual rate of 1,725,000, according to estimates. This is 2.7 percent below the revised October rate which had represent a 2.3 percent gain. The fall in the number of building permits may be taken by some to indicate a weakening in the housing market although yesterdays release of the NAHB's housing market index revealed it to be at a two year high.
Privately-owned housing completions in November rose by 8.8 percent while single-family housing completions were 10.1 percent above the October figure.
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