Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       

Blog Home
   Brian Wesbury
Chief Economist
Click for Bio
Follow Brian on Twitter Follow Brian on LinkedIn View Videos on YouTube
   Bob Stein
Deputy Chief Economist
Click for Bio
Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
  Housing starts increased 9.3% in November to 685,000 units at an annual rate
Posted Under: Data Watch • Home Starts • Housing
Supporting Image for Blog Post

Implications:  Great news! The turning point in home building has clearly arrived.  Homes were started at a 685,000 annual rate in November, while building permits hit a 681,000 annual rate. Both of these results easily beat consensus expectations and, except for one month affected by the homebuyer tax credit, are the fastest rates in three years.  The gain in starts in November was mostly due to multi-family units, which soared 25.3%. These starts might fall back next month, but, given the general trend away from owner-occupancy and toward rental occupancy, multi-family should continue to generally trend higher. Meanwhile, single-family starts were also up in November and the six-month average for starts has been moving up. Except for the artificial homebuyer credit, this is the first consistent upward trend since the collapse of building activity started in early 2006. Gains in starts are beginning to filter through to the number of homes under construction, which have gone up three months in a row. This is a major break from the recent past. From 2006 through five months ago there had been no increases at all. Based on population growth and "scrappage," home building must increase substantially over the next several years to avoid eventually running into shortages. For more on the housing market, please see our recent research report (link). In other good news this morning, last week's (same-store) chain store sales were up 4.6% from a year ago according to the International Council of Shopping Centers and up 3.4% according to Redbook Research.

Click here for the full report.
Posted on Tuesday, December 20, 2011 @ 11:10 AM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2022 All rights reserved.