Winter Weather Slows Housing Starts in January

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ousing starts in the United States fell 7.9% to a 1.903 million-unit annual rate in January, as severe winter weather restrained some building, the Commerce Department reported Wednesday.

The January pace follows a December rate of 2.067 million, which was the fastest since February 1984.

Falling construction likely means more business for flatbed trucking companies that haul building materials. Also, in the case of home construction, dry van freight can see an increase in demand for the delivery of household appliances and furniture.

Part of the reason for the decline was that the average temperature in the Northeast last month was 6.5 degrees Fahrenheit cooler than the average from 1895 to 2004, according to the National Climatic Date Center.

Hovnanian Enterprises said stormy weather last month made it more difficult to start building some homes, Bloomberg said.

Commerce also said building permits, an indicator of future construction, fell 2.8% to 1.899 million units at an annual rate, after rising to 1.953 million the previous month.

Starts fell in all regions: 21% in the Midwest, 14% in the Northeast, 5.2% in the South and 1% in the West.

The report also said starts of single-family homes fell 8% in January to a 1.537 million-unit rate and housing completions fell 2.3% to 1.709 million units.