In December the homebuilding market experienced a 17.7% monthly gain in starts, which was the revised upward tally, producing a 1.63 million-unit pace that was far and away the most robust number of the expansion. January's totals, though down 3.6% from December's blistering rate still came in at a 1.57 million-unit pace, which ranks as number two on that list.

While construction numbers usually drop in the winter, the sixth warmest December on record and a very warm January helped with the huge output. And January's totals beat expectations, which means 2020 is starting off 21% better than 2019 in housing starts.

 

Single-family starts, after expanding in six of the past eight months, were off 5.9% in January but multifamily grew by 0.7%, the fourth straight improvement for that category.

Single-family permits have risen eight consecutive months and multifamily permits are up three of the past four months. And apartment permits are hovering around 15% above starts on a six-month average basis.

The Wells Fargo Economics Group believes this last number signals "plenty of projects in the pipeline."

The group also stated that, "Low mortgage rates have improved buying conditions, and consumers increasingly report now is a good time to buy. Sensing this, builders have turned very optimistic."

However they caution, "The housing industry is not immune to the coronavirus factory closures and supply chain disruptions, as many building materials are sourced from China."