Briefing.com: Housing Starts

Updated: 21-Sep-21 09:13 ET

August Housing Starts

Updated: 21-Sep-21 09:13 ET

Highlights

Total housing starts increased 3.9% month-over-month in August to a seasonally adjusted annual rate of 1.615 million (Briefing.com consensus 1.560 million) while permits rose 6.0% to a seasonally adjusted annual rate of 1.728 million (Briefing.com consensus 1.600 million).

Key Factors

The change in single-unit starts by region: Northeast (+52.4%); Midwest (-12.5%); South (+2.5%); and West (-20.5%).
The change in single-unit permits by region: Northeast (+15.5%), Midwest (0.0%); South (-2.5%); and West (+5.5%).
Multi-unit starts increased 20.6% month-over-month while multi-unit permits increased 15.8% month-over-month.
The number of units under construction at the end of the period was up 1.7% month-over-month to a seasonally adjusted annual rate of 1.404 million. That leaves the Q3 average 3.5% above the second quarter average, so it will be accounted for as a positive input in Q3 GDP forecasts.

Big Picture

The key takeaway from the report -- and why it isn't as pleasing as the headlines suggest-- is that the upside surprise was driven almost entirely by multi-family units. To wit, single-family starts declined 2.8% month-over-month while permits for single units were up just 0.6%.