ConDig (20-Feb-20).  Construction of new homes in the US tumbled 3.6% in January as a slight uptick in the multifamily sector was offset by a drop in single-family starts, while overall permits surged to a 13-year high.

Residential starts fell to 1.57 million million units last month compared with a revised December figure that showed homebuilding rising to a pace of 1.626 million units, the highest level since December 2006, according to latest figures from the US Housing and Urban Development and Commerce Department.

It comes as single-family starts crumbled 5.9% to a 1.01 million seasonally adjusted annual rate. The multifamily sector, which includes apartment buildings and condos, edged up 0.7% to a 557,000 unit pace.

“The housing recovery continues, as single-family housing starts have surpassed 1 million for the second consecutive month and multifamily production has been running above 500,000 for the same period,” said Dean Mon, chairman of the National Association of Home Builders (NAHB).

“Meanwhile, builder confidence remains solid as demand continues to pick up.”

Housing permits, which are a sign of future construction activity, roared up 9.2% to a 1.55 million annualized rate in January — the highest level since March 2007. 

Single-family permits increased 6.4% to a 987,000 rate, while multifamily permits increased 14.6% to a 564,000 pace.