US Housing Starts at 4-Month High of 1189K

US housing starts jumped 4.8 percent to a seasonally adjusted annualized rate of 1189 thousand in June from May of 2016, after falling an upwardly revised 1.7 percent in the previous period. Figures came much better than market expectations of a 0.5 percent gain, reaching the highest in four months, as groundbreaking on single-family homes rebounded.

Starts grew in the Northeast (+46.3 percent) and in the West (+17.4 percent), offsetting falls in the Midwest (-5.2 percent) and the South (3.4 percent). 

Groundbreaking on single-family homes, the largest segment of the market, grew 4.4 percent to 778 thousand. The Northeast recorded the biggest increase (up 31.6 percent), followed by the Midwest (+7.3 percent), the West (+3.1 percent) and the South (+0.5 percent). Housing starts for the volatile multi-family segment went up 1.6 percent to 392 thousand, the highest since September last year. 

Building permits rose 1.5 percent to a seasonally adjusted annual rate of 1153 thousand. Single-family authorizations increased 1 percent to 738 thousand, boosted by the Northeast (+13.7 percent) and the West (+0.6 percent) while single-family permits were flat in Midwest and fell 0.3 percent in the South. Multi-family building permits increased 1.9 percent. 

Year-on-year, housing starts fell 2 percent and building permits were down 13.6 percent.

US Housing Starts at 4-Month High of 1189K

U.S. Census Bureau | Joana Taborda |
7/19/2016 1:56:55 PM