January 25, 2009
WASHINGTON, D.C. - New US housing starts fell unexpectedly in December, according to the US Commerce Department. Starts were down four per cent on a seasonally adjusted annualized basis. Expectations were for a slight increase, but instead the rate fell from 574,000 units in November to 557,000 units in December. Unusually cold weather and a continually weak job market are among the factors being singled out for slowing the market up.
Groundbreaking activity also plummeted a record 38.8 per cent, to an all-time low of 553,000 units for 2009.
Single-family starts led the move lower, falling 6.9 per cent in December to an annual rate of 456,000 units. Groundbreaking in the multi-family segment was up 12.2 per cent to 101,000 units SAAR. And this is on the heels of a 69.8 per cent increase in November.
New building permits for 2009 came in 36.9 per cent lower than in 2008.
