US residential construction permits, a leading indicator of new construction, increased 0.3 per cent in December compared to the revised November estimate, to a seasonally adjusted annual rate of 1,326,000.  This is 0.5 per cent above the December 2017 estimate of 1,320,000.  Year over year, permits for single unit structures decreased by 2.2 per cent, while permits for structures with 2 to 4 units declined by 5.1 per cent in December. Permits for structures with 5 or more units increased 5.7 per cent over December 2017.

US housing starts were down 11.2 per cent in December 2018 compared to the revised November estimate, to a seasonally adjusted annual rate of 1,078,000 units.  This month's estimate is 10.9 per cent below the December 2017 estimate of 1,210,000.

ANNUAL

In 2018, building permits (unadjusted) rose 2.2 per cent over 2017 levels to 1,310,700. Permits for single unit structures were up 4.0 per cent in 2018, while permits for 2 to 4 unit structures were up 1.1 per cent and permits for structures with 5 or more units were down 1.0 per cent.

Annual housing starts (unadjusted) were up 3.6 per cent to 1,246,600 in 2018 compared to 2017.

US housing starts are an important indicator for Nova Scotia's wood exports. Though not a perfect predictor, US housing starts and the value of Nova Scotia's wood exports follow similar directions over the long-term.

Source: US Census Bureau New Residential Construction