Wednesday, July 17, 2013

Housing Starts Slowed in June

New residential construction slowed in June to a pace of 836K per year, a 9.9% decrease from May’s revised pace. The pace of housing starts is at their lowest level in almost a year. While May was revised up to an 8.9% increase from the previous month, April was revised downward slightly. Housing starts are 10.9% above year ago levels.

Despite the strong recovery in housing starts seen in recent months, there is a long way to recover to reach normal levels. February’s pace is just 56 percent of its long-run average of 1.5 million units per year.

The slowdown in June was primarily caused by multi-family construction, which shrank 26% from the previous month. Single family construction decreased 0.8% from the previous month.

Permit issuance dropped 7.5%, largely due to the 21.4% decrease in multi-family permit issuance in June. However, single family permit issuance increased 0.6%. Total permit issuance is up 16% from year-ago levels. Single family permits are still strongly rising while multifamily permitting growth has slowed to 1% year over year.

Read the Census report.

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