The Census Bureau reported(.pdf) that housing starts rose 14.6 percent in January after falling 5.1 percent in December, however, as shown below, percentage changes from what have been historically low levels are nothing to get too worked up about.

As noted here many time previously, activity in the residential construction industry will be “clunking along on the bottom” for the foreseeable future, the latest driver being the new wave of post-Robo-signing foreclosures that have already begun to hit the resale market, providing stiff competition for home builders at much lower prices.

Housing starts reversed much of December’s 15.3 percent gain with a drop of 10.4 percent in January and both measures of home construction activity remain at about one-third of their pre-housing bubble levels, down about 75 percent from the peak in 2005.