Single-Family Starts Hold Steady in July

Filed in Economics, Home Building, Multifamily by on August 16, 2017 0 Comments

frameNationwide housing starts fell 4.8% in July to a seasonally adjusted annual rate of 1.16 million units, according to newly released data from HUD and the Commerce Department. Single-family production slipped 0.5% in July to a seasonally adjusted annual rate of 856,000 after a strong, upwardly revised June reading.

Year-to-date, single-family starts are 8.6% above their level over the same period last year. Multifamily starts dropped 15.3% to 299,000 units.

“The overall strengthening of the single-family sector is consistent with solid builder confidence in the market,” said NAHB Chairman Granger MacDonald. “The sector should continue to firm as the job market and economy grow and more consumers enter the housing market.”

“New-home production numbers this month are in line with our forecast for a slow and steady recovery of the housing market,” said NAHB Chief Economist Robert Dietz. “We saw multifamily production peak in 2015, and this sector should continue to level off as demand remains solid.”

Regionally in July, combined single- and multifamily housing production rose 0.6% in the South. It fell 1.6% in the West, 15.2% in the Midwest and 15.7% in the Northeast.

Overall permit issuance in July was down 4.1% to a seasonally adjusted annual rate of 1.22 million units. Single-family permits held steady at 811,000 units while multifamily permits fell 11.2% to 412,000.

Regionally, overall permits rose 19.2% in the Northeast. Permits fell 1.4% in the South, 7.9% in the West, and 17.4% in the Midwest.

For additional analysis, read Dietz’s Eye on Housing blog post.

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