Realtor, Tennis Player, Titans & Vols Fan, Nashvillian… Live! Work! Play! in Middle Tennessee

Weather Blamed for Freeze on Housing Starts

with 2 comments

Weather Blamed for Freeze on Housing Starts
Article by Daily Real Estate News; February 20, 2014

Construction on new single-family homes and apartments dropped 16 percent, to a seasonally-adjusted annual rate of 880,000 in January, the Commerce Department reports. This marks the second consecutive monthly drop in housing starts, as frigid winter weather puts a chill on the new-home recovery, according to the National Association of Home Builders.

Single-family housing starts posted a 15.9 percent decline in January, while the often volatile multifamily sector dropped 16.3 percent, according to the Commerce Department.

Housing starts dropped by the largest amount—70 percent—in the Midwest, which has been facing the brunt of the cold zap recently. The West, facing less severe weather conditions, still saw a 17 percent decline in housing starts, the Commerce Department reports. New-home permits for single-family homes – a gauge of future housing activity – fell slightly by 1.3 percent in January.

“Cold weather clearly put a chill on new-home construction last month, and this is also reflected in our latest builder confidence survey,” says Kevin Kelly, NAHB chairman. “Further, builders continue to face other obstacles, including rising materials prices and a lack of buildable lots and labor.”

The report follows on the heels of NAHB’s builder sentiment index that showed industry confidence plunged at its fastest rate in the 30-year history of the index. In the index, severe winter weather conditions were blamed again for changing builders’ outlook on the new-home market from “good” to “poor.”

While 2014 has been off to a chilly start in most parts of the country, the builders’ trade group still expects housing starts to total more than 1.1 million this year, up from 923,000 in 2013.

“Though the decline in starts is largely weather-related, it is worth noting that on the upside housing production for the fourth quarter was above 1 million for the first time since 2008 while single-family permits held relatively steady,” says NAHB Chief Economist David Crowe. “The less weather-sensitive permits data suggests that our forecast for solid growth in single-family housing production in 2014 remains on track, as pent-up housing demand is unleashed.”

The lack of inventory remains a major bottleneck to the housing recovery, notes Lawrence Yun, National Association of REALTORS®’ chief economist, on NAR’s Economists’ Outlook blog.

Existing-home inventory has been at a 13-year low, while new-home inventory sits near a 50-year low, he says. Yun notes that housing starts are far short of what they should be—at least 1.5 million annually, based on historical trends.

Yun says that inventory constraints can be relieved from an increase in new-home construction. But until then, he says home prices will likely be moving higher as a result of the shortage.

Source: National Association of Home Builders; Daily Real Estate News (022014) | Blog, In The News, distribution provided by Kenneth Bargers and Bargers Solutions, member of Pilkerton Realtors, residential real estate services located in Nashville, Tennessee


2 Responses

Subscribe to comments with RSS.

  1. Very good blog! Do you have any hints for aspiring writers?

    I’m hoping to start my own blog soon but I’m a little lost on everything.
    Would you suggest starting with a free platform like WordPress or go for a paid option?

    There are so many choices out there that I’m completely overwhelmed
    .. Any suggestions? Bless you!

    apartments in west end nashville

    February 21, 2014 at 7:32 am

    • Thank you for the compliment! I would suggest starting with WordPress because it is extremely user friendly. Other suggestions would be to attempt posting at least once a week and stay focused on your blog’s area of interest – always ask for permission in writing for images that you would like to use and articles to repost.. Please let me know when you are up and running and I will gladly follow your blog’s content.


      February 21, 2014 at 6:33 pm

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


Ad, Sales & Marketing.

Rachel Being Chatty

Now featuring 15% more sarcasm.


The Casual Way to Discuss Movies

The Ninth Life

It's time to be inspired, become encouraged, and get uplifted!


The Casual Way to Discuss Movies

The Shameful Sheep

shit storms, shame, and stories that make you cringe

Autoindigo Blog

Fresh news about automotive world. Cars overviews written by experts, pros and cons, features, performance, safety, interior and driving.

Little Fears

Tales of whimsy, humour and courgettes

VR, AR, 3D and Video Glasses Reviews

Woodstock Business Welcome

Welcome Wagon Canada

Blookup Blog

Turn and print all your digital contents, blogs and social networks into amazing real paper books on


Graphic Designer


Sabbles woz 'ere


A town everyone hates, yet no one leaves...

Attila Ovari

Loving Life and Inspiring Others

Augusta Littleton

Nonprofits and Charities

The Home Buyer Class Blog

What to know when buying a home

The Contractor's Cabinet

A Blog On Construction & More


Love, Travel Lifestyle and Destinations


My journey - The good, bad and the ugly


"A Blog worth reading "

john pavlovitz

Stuff That Needs To Be Said

Smart Discount Shop

Discover all the creative and ingenious ways to save money !


4 out of 5 dentists recommend this site


A great site

Vonj Productions

Bringing you love through spirit!

The Dystopian Nation of City-State

A cruel, futuristic vision created by science fiction authors James Courtney and Kaisy Wilkerson-Mills. ©2013-2016. All Rights Reserved. All writings available through Amazon.

Bubba Pigg

South' s Leading Anti- Intellectual: Wealthy in Common Sense and the Wisdom of Selfishness

@TheTexasBroker Blog

Real Estate Sales Houston Texas

The Travelling Pantry

Adventurous, Honest and Wholesome

Top 10 of Anything and Everything!!!

Animals, Gift Ideas, Travel, Books, Recycling Ideas and Many, Many More



William the butler

Serving drinks since 1985


This site is the bee's knees

Plutonium™ Paint

Ultra Supreme Professional Grade Aerosol Paint

Levi's Daily Thoughts

For I know that my Redeemer lives Job 19:25

Covered in Beer

by Thomas Cochran, Known Moron

Natalie Breuer

Natalie. Writer. Photographer. Etc.

Post it Notes from my Idiot Boss

delivered directly to my computer monitor on an all too regular basis...

Late Blooming Entrepreneurs

Making it big in business after age 40