Homebuilders in the South were optimistic to end 2023 as building permits jumped to their highest level since 2022 and housing completions jumped to a 17-year high, according to the latest data from the Census Bureau.
Housing Completions. Privately owned housing completions rose to a seasonally adjusted annual rate of 904,000 in December, up 3.1% from November and the highest level since January 2007.
- Single-family completions rose to 649,000 in December, up 9.8% and the highest level since November 2022.
Building Permits. Privately‐owned housing units authorized by building permits jumped to a seasonally adjusted annual rate of 860,000 in December, up 8.4% from November and the highest level since October 2022.
- Single-family building permits rose to 593,000 in December, up 2.1% from November and the highest level since June 2022.
Housing Starts. Privately‐owned housing starts fell to a seasonally adjusted annual rate of 787,000 in December, down 5.1% from November but still higher than 5 of the last 6 months.
- Single-family housing starts fell to a seasonally adjusted annual rate of 588,000 in December, down 7.1% from November but it was the second-best month in the last 7 months.
Large Majority. The South made up 57.5% of building permits, 54% of housing starts, and 57.4% of housing completions.
Nationally. Building permits rose to a seasonally adjusted annual rate of 1.495M, up 1.9% from November and above economist expectations of a 0.5% increase.
- Housing starts were at a seasonally adjusted annual rate of 1.46M in December, down 4.3% from November and below the 1.9% estimate economists were expecting.
- Housing completions rose to a seasonally adjusted annual rate of 1.574M in December, up 8.7% from November and the highest level since February.
BOTTOM LINE. The jump in building permits shows that builders are feeling optimistic as we start 2024 and the South is showing no signs of slowing.