New Housing Starts, Building Permits Drop in June
The U.S. Census Bureau and the Department of Housing and Urban Development reported this morning that new housing starts in June fell to an annual seasonally adjusted rate of 836,000, a decrease of 9.9% from the upwardly revised May rate of 928,000 and a gain of 10.4% above the June 2012 rate of 757,000. The consensus estimate from a survey of economists expected a rate of around 928,000.
The seasonally adjusted rate of new building permits fell to 911,000, which is 7.5% below the upwardly revised May rate of 985,000 and 16.1% higher than the June 2012 rate of 785,000. The consensus estimate called for 985,000 new permits.
Single-family housing starts fell slightly to an annualized rate of 591,000 in June, down 0.8% from the downwardly revised May rate of 596,000.
Permits for new single-family homes rose 0.6% in June, to an adjusted annual rate of 624,000, from an upwardly revised total of 620,000 in May.
The drop in new housing starts is virtually entirely due to a sharp fall in buildings with five or more units. In May, multiple-unit construction rose from 244,000 starts in April to 322,000. The June count slipped to 236,000, a drop of 26.7%. Year over year, construction starts on multiple family buildings are up 7.8%.
The National Association of Homebuilders (NAHB) yesterday reported a six-point rise in builder confidence in July, noting that low inventory levels are encouraging builders once again to ramp up construction.
Filed under: Housing