**MNI: 5 Things We Learned From New Residential Construction Data>

By Sara Haire and Holly Stokes

     WASHINGTON (MNI) - The following are the key points from the 

November new residential construction data released Thursday by the 

Commerce Department: 

     - December housing starts saw a decline of 8.2% to a 1.192 million 

rate, much lower than 1.275 million expected. However the 4Q average is 

6.7% higher than the 3Q average, pointing to an increase in residential 

fixed investment. Housing starts in November were revised up to 1.299 

mln from 1.297 mln. 

     - Permits saw a very small 0.1% decline to a 1.302 million rate, 

but still ahead of expectations for 1.293 million. The 4Q average for 

building permits was 5.2% higher than the 3Q average.  

     - Starts saw a 14.2% decrease in the South, while building permits 

issued fell 11.1%in the region. This indicates a return to pre-hurricane 

levels, surprising those expecting building to pick up in Texas and 

Florida. Starts were down across all regions, with a 4.3% decline in the 

Northeast, a 2.2% decline in the Midwest, and a 0.9% drop in the West. 

     - Single-family housing starts fell 11.8% in December, but 

multi-family rose 1.4%. For permits, single-family were up 1.8% to 881k, 

the highest level seen since August 2007, which points to housing starts 

potentially rising in the coming months. However, multi-family was down 

3.9%. 

     - Homes permitted but not started rose 1.3%, a further indication 

that starts should be on the rise in the near future. Homes under 

construction were up a small 0.7%, while completions rose 2.2% bouncing 

back after the slight decline in November. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$,MAUDR$]