US single-family housing starts fall in January 12-Mar 21:13

U.S. single-family homebuilding fell in January amid harsh winter weather, and a strong rebound is unlikely, with permits for future construction declining.

Single-family housing ​starts, which account for the bulk of homebuilding, dropped 2.8% to a ‌seasonally adjusted annual rate of 935,000 units in January, the Commerce Department's Census Bureau said on Thursday. Data for December was revised lower to show starts rebounding to a rate of ​962,000 units instead of the previously estimated 981,000-unit rate.

The report was ​delayed by last year's shutdown of the federal government. Groundbreaking on ⁠new single-family housing projects tumbled 33.3% in the Northeast and fell 4.6% ​in the densely populated South. Starts rose in the Midwest and the West regions. ​Heavy snow and frigid temperatures slammed large parts of the country in January.

Single-family starts dropped 6.5% year-on-year in January. Homebuilding has been hampered by tariffs on imported goods, including lumber and vanity ​cabinets, worker shortages amid an immigration crackdown and higher mortgage rate rates.

Though mortgage ​rates have declined this year, stimulating home purchasing, the U.S.-Israeli war with Iran is pushing ‌up ⁠oil prices and boosting U.S. Treasury yields. Mortgage rates track the benchmark 10-year Treasury yield.

Homebuilder sentiment has remained depressed, suggesting that new single-family home construction is unlikely to significantly improve in the near term.

Starts for housing projects with 5 ​units or more, ​a very volatile ⁠segment, surged 29.1% to a rate of 524,000 units in January. Overall housing starts increased 7.2% to a rate of 1.487 million units. ​They advanced 9.5% year-on-year in January.

Permits for the future construction ​of single-family ⁠housing units fell 0.9% to a rate of 873,000 units in January. Permits decreased 11.6% from a year ago.

Building permits for housing projects with 5 units or more tumbled 13.4% to ⁠a ​rate of 453,000 units in January. Overall building ​permits dropped 5.4% to a rate of 1.376 million units. They declined 5.8% year-on-year in January.

Residential investment, which includes homebuilding, ​has contracted for four straight quarters.