Market Conditions

Construction Surges to Highest Levels in 15 Years

The residential construction market finished out 2020 much more strongly than analysts had expected. The U.S. Census Bureau and Department of Housing and Urban Development reported significant increases in both residential permitting and housing starts in December, the second month in a row those numbers have grown. The numbers, however, took a hit in the Northeast.

Permits for privately funded construction were issued at a seasonally adjusted annual rate of 1,709,000 units, an increase of 4.5 percent from the revised (from 1,639,000 units) rate of 1,635,000 in November. The pace of permitting in December was 17.3 percent higher than the 1,437,000 units estimated a year earlier.

Econoday and Trading Economics had reported low expectations for December permits on the part of their analysts. The consensus estimates from both were around 1,600,000 units.