Housing Starts Jump by 12.1% in December

In 2012, building permits increased dramatically by 30.3%

Housing strengthened in November as building permits in December 2012 rose at a seasonally adjusted annual rate of 903,000, up 0.3% from the revised November rate and up 28.8% from December 2011, according to estimates from the Census Bureau.

Housing starts for the month of December were at a seasonally adjusted annual rate of 954,000, up 12.1% from the revised November estimate and up 36.9% from December 2011.

CNN identifies post-Hurricane Sandy construction as being a major factor in the dramatic gains in housing starts;

The Northeast saw a 19% increase in housing starts from November to December, as construction picked back up again after the storm put a halt to new building activity. Single-family housing starts also boosted December’s strong reading, rising more than 8% from November.

For 2012 overall, building permits increased dramatically by 30.3% and starts grew 28.1%, leading many analysts to state that housing will be the main driver for the economy this year.