Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 

Blog Home
   Brian Wesbury
Chief Economist
 
Bio
X •  LinkedIn
   Bob Stein
Deputy Chief Economist
Bio
X •  LinkedIn
 
  Housing Starts Declined 11.0% in October
Posted Under: Data Watch • Home Starts • Housing
Supporting Image for Blog Post

 
Implications: Housing starts fell 11% in October, giving back more than all of the gain in September and then some. However, we continue to expect robust gains in home building in the year ahead and can think of at least four reasons not to worry. First, volatility in overall starts is typical and was driven by even more volatile multi-family starts, which fell 25.1% in October, after jumping 18.1% in September. Second, starts plummeted in the South as big storms and floods likely disrupted builders' plans to break ground. Third, building permits rose in October, while permits to build single-family homes hit their highest level since 2007. And fourth, the total number of homes under construction (started but not yet finished) increased 0.9% in October and is up 16.4% versus a year ago. The number of single-family homes under construction are up 14% in the past year and are at the highest level since 2008. The number of multi-family units under construction stands at the highest since the mid-1980s. Add it all up, and it's clear that builders were very busy in October, even though ground breaking took a breather. Based on population growth and "scrappage," we expect overall housing starts should rise to about 1.5 million units per year by 2017, so a great deal of the recovery in home building is still ahead of us. Expect the housing sector to remain one of the bright spots in the Plow Horse Economy.

Click here for PDF version
Posted on Wednesday, November 18, 2015 @ 10:55 AM • Post Link 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.
Follow First Trust:  
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 © 2024 All rights reserved.