Privately-owned housing starts in December increased 12.1 percent to a seasonally adjusted annual rate of 954,000 from 851,000 in November, according to figures released Thursday by the U.S. Department of Commerce. This is the highest level of new home production since June 2008.
The latest tally stands 36.9 percent higher than the December 2011 estimate of 697,000. For all 2012, the Department of Commerce estimated 780,000 housing units were started, which is 28.1 percent higher than the 2011 figure of 608,800.
Single-family housing starts in December increased 8.1 percent to 616,000 from 570,000 in November. "Builders have become increasingly optimistic about conditions in local housing markets in recent months, and this report underscores that the housing recovery is well on its way," said Barry Rutenberg, chairman of the NAHB and a home builder from Gainesville, Fla. "With inventories of new homes at razor-thin levels, builders are moving prudently to break ground on new construction ahead of the spring buying season to meet increasing demand."
Combined single-family and multifamily starts activity was up across all regions in December. The Northeast posted a gain of 21.4 percent, the Midwest was up 24.7 percent, the South posted a 3.8 percent increase and the West was up 18.7 percent.
"Overall, this report represents a solid ending to 2012 and a promising start to 2013," said NAHB senior economist Robert Denk. "Multifamily production is almost back to normal levels, and while single-family starts still have a way to go, they are gaining momentum."
