Tuesday, July 20, 2010

Housing Starts Fall 5.0%, Single Family Starts Down 0.7%

In June, housing starts fell 5.0% to an annualized pace of 549,000 units. June’s decline follows a large drop in May of 14.9% This drop was previously reported as a 10.0% drop. This sharp decline in these two months came after the home buyer tax credit expired. June’s start rate was the slowest since October 2009.

Single family starts fell by a much smaller 0.7% over the month. However, this came on the back of a very large 18.8% decline in May. The far more volatile multi-family component plunged 21.5% in June following a 4.3% rise in May. From a year prior, total starts were down 5.8%, the first year-over-year decline since last fall.

New building permits, which tend to lead future starts, reversed two months of declines by rising 2.1% in June. However, single family permits continued to fall, dropping 3.4%.

10.07.20 (Source: Census Bureau)

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