MNI DATA ANALYSIS:US October Starts Pace Rises To 1.228m SAAR>

--October Building Permits Fall 0.6% To 1.263m SAAR

--Starts Up, Completions Down In South Region

By Kevin Kastner, Harrison Clarke, and Shikha Dave

     WASHINGTON (MNI) - The pace of housing starts rose by 1.5% to a 

1.228 million seasonally adjusted annual rate in October, slightly below 

expectations for a 1.230 million rate, with little impact seen from 

Hurricane Michael, data reported by the Commerce Department Tuesday 

morning indicated. 

     Effects from the hurricane could be seen in a 2.4% fall in permits 

and a 3.7% decline in completions in the South, but there should be a 

boost later in the year as rebuilding efforts begin in the South and in 

California after the wildfires. 

     Housing starts fell by 34.1% in the Northeast and by 4.6% in the 

West, but rose by 32.9% in the Midwest, and by 4.7% in the South.

     Housing starts of single-family homes fell by 1.8% in October 

after a 1.0% decrease in the previous month, while multi-family starts 

rose by 10.3% in October, based on an MNI calculation. This followed a 

15.6% decline in the previous month. 

--BUILDING PERMITS FALL SLIGHTLY

     Building permits declined by 0.6% in the month to a 1.263 million 

rate after rising to 1.270 million in September.

     This decline was driven by declines in both single-family and 

multi-family starts. Homes permitted but not started rose by 1.2% in 

October. 

     The October starts average was slightly above the 1.225 million 

third quarter average after all revisions were included. The October 

permits pace was below the 1.274 million third quarter average. 

     Homes under construction rose by 0.5%, but completions were down 

3.3%, suggesting a drop in new home supply in the near term. However, 

the rebuilding efforts in the South and West should add to home building 

in the near term. 

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

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