July 19, 2012 (Chris Moore)
Housing starts rebounded from May’s unexpected decline as both single family and multi-family housing starts posted solid gains in June according to the latest data released by the Census Bureau.
Filings for building permits declined for the month, led by a double-digit decline in multi-family housing permits, but were still nearly 20 percent higher than last year.
Privately owned housing starts increased by 6.9 percent to a seasonally adjusted annual rate of 760,000 in June from a revised estimate of 711,000 in May. Housing starts were 23.6 percent higher than in June 2011 which had an estimated 615,000 starts.
Single-family housing starts improved in June to a seasonally adjusted annual rate of 539,000, up 4.7 percent from a revised estimate of 515,000 starts in May and were 21.7 percent higher than in June of last year which reported an estimated 443,000 starts.
Housing starts for multi-family dwellings jumped 17.0 percent from a revised rate of 182,000 starts in May to a seasonally adjusted rate of 213,000 starts in June. Housing starts for multi-family dwellings were 29.1 percent higher than a year ago when an estimated 165,000 starts were recorded.
Regionally, monthly housing starts increased in two of the four regions with the West posting the largest increase of 36.9 percent, followed by the Northeast at 25.6 percent while the South and the Midwest suffered declines of 7.3 and 4.2 percent, respectively.
Compared to a year ago, three of the four regions posted increases in housing starts with the West posting the largest increase of 63.4 percent, followed by the South and the Northeast at 26.9 and 11.6 percent, respectively, while the Midwest reported the only decline of 19.8 percent.
The number of building permits issued in June fell to a seasonally adjusted annual rate of 755,000, down 3.7 percent from a revised estimate of 784,000 permits in May. Authorized building permits were still 19.3 percent higher than the June 2011 estimate of 633,000.
Single-family building permit authorizations were 0.6 percent higher in June than May with 493,000 permits authorized in June compared to a revised 490,000 in May. Building permit authorizations for single-family homes were 19.7 percent higher than in June of last year which had an estimated 412,000 permits issued.
Multi-family dwelling permits in June fell to 241,000 authorizations from a revised total of 272,000 in May, a decline of 11.4 percent. Authorizations for multi-family dwellings were 21.7 percent higher than in June of last year which had an estimated 199,000 authorizations.
Building permit authorizations increased in only one of the four regions in June compared to May. In the West, authorizations rose by 2.9 percent while in the South and the Midwest, authorizations declined by 8.0 and 0.8 percent, respectively. In the Northeast, building permit authorizations remained unchanged from the previous month.
Year-over-year, building permit authorizations increased in all four regions with the West posting the largest increase of 30.4 percent, followed by the South which posted a 17.3 percent increase and Midwest and the Northeast saw gains of 16.8 and 9.9 percent, respectively.
Housing completions increased by 2.6 percent in June compared to May with a seasonally adjusted annual rate of 622,000 completions reported in June compared to May’s revised estimate of 606,000 completions. Housing completions were 7.2 percent higher than in June of last year when an estimated 580,000 completions were reported.
Single-family completions in June were at an annual rate of 470,000, which was 1.3 percent higher than May’s revised rate of 464,000 and 3.5 percent above last year’s rate of 454,000. Multi-family completions in June were at a rate of 134,000, 6.3 percent higher than the 126,000 units completed in May and 21.8 percent higher than the 110,000 completions in June of last year.
Tags: housing starts, single-family homes, multi-family dwellings, building permits, housing completions