U.S. housing starts rise in November, residential investment likely to support growth over 2020

U.S. housing starts rose 3.2 percent to 1.365 million units in November from an upwardly revised 1.323 million units in October. Market expectations were for a slightly lower rise of 2.4 percent. The revision reflected higher multi-family starts, while single-family starts were downwardly revised.

The rise was widespread, with both single and multi-family starts rising. Single-family starts rose 2.4 percent to 938k, while the more volatile multi-family segment recorded a larger 4.9 percent rise to 427k.

Permits showed a similar narrative to starts, rising 1.4 percent on the month after increasing by 5 percent the month prior. Single-family permits continued their seven-month streak of advances, rising slightly by 0.8 percent. Multi-family permits also rose 2.5 percent, extending last month’s 7.8 percent rise.

Region wise, starts came in mixed with two of the four regions recording a rise and two recording a fall. The Midwest region led the fall, followed by the Northeast. The South and West regions recorded a rise of 10.3 percent and 1.4 percent, respectively.

“Overall, today's report bodes well for future construction activity. As such, residential investment, which has subtracted from economic growth in recent history, but turned positive in Q3, is projected to continue to support growth over the next year”, said TD Economics.