Briefing.com: Housing Starts

Updated: 16-Jun-17 09:19 ET

May Housing Starts

Updated: 16-Jun-17 09:19 ET

Highlights

Housing starts ran at a seasonally adjusted annual rate of 1.092 million in May (Briefing.com consensus 1227K), down 5.5% from the revised April rate of 1.156 million. On a year-over-year basis, housing starts were down 2.4%.
Building permits also declined, falling 4.9% month-over-month to a seasonally adjusted annual rate of 1.168 million. Permits for single-family units declined 1.9% as compared to April.

Key Factors

The overall decline in starts was paced by a 9.8% drop in multi-unit dwellings. Single-family starts declined 3.9% after ticking up 0.4% in April.
Single-family starts jumped 12.5% in the Northeast, rose 9.5% in the Midwest, declined 8.9% in the South, and fell 4.9% in the West.
Single-family building permits increased 1.9% in the Northeast, increased 2.4% in the South, declined 12.9% in the Midwest, and declined 5.2% in the West.
The total number of units under construction at the end of the period declined 0.7% to 1.067 million. This was also down 0.7% when compared to the first quarter average of 1.075 million.

Big Picture

The key takeaway from the report relates to the continued decline in single-family permits, which means supply shortages and affordability constraints are likely to persist in the new home market.