New Home Construction Dips in January Christopher Furlong/Getty Images

New Home Construction Dips in January

It's the fifth straight month building starts topped 1,000,000, but wage growth has remained stagnant.

Construction of new homes in the U.S. fell in January, according to the latest numbers from the Commerce Department.

Private new housing starts lost 2% from December’s big gains, but were still strong at 1,065,000. Year over year new construction is up by 18.7%.

Weather played a part, last December was mild for the time of year, while last January had much of the country in a deep freeze.

Up in January were building permits, a key indicator for future construction. Last month edged out December by 0.7% coming in at 1,053.000.

It’s the fifth straight month building starts topped 1,000,000, but wage growth has remained stagnant.

Analysts are predicting a jump in housing starts for 2015, and along with them a pick-up in wages that should also propel the market.

Groundbreaking on single-family homes is still on a downward trend. New construction on multi-family homes continues to rise and rental vacancies are at their lowest level since late 2008.

 

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