Nationwide housing starts fell 9.3 percent in June to a seasonally adjusted annual rate of 893,000 units. The drop, according to the National Association of Home Builders, was caused by a nearly 30 percent decline in the South.
Nationwide housing starts fell 9.3 percent in June to a seasonally adjusted annual rate of 893,000 units. The drop, according to the National Association of Home Builders, was caused by a nearly 30 percent decline in the South.
Despite the crash, all other regions posted monthly gains. Combined single- and multifamily house production in the Northeast, the Midwest and the West rose 14.1 percent, 28.1 percent and 2.6 percent, respectively. Production in the South fell 29.6 percent.
"Take away the South and nationwide housing starts would have been in positive territory this month," said NAHB Chief Economist David Crowe in a statement. "This sharp regional decline could be due in part to lots and labor shortages, which are particularly acute in that part of the country. However, the general direction of housing production is trending upward, and we expect 2014 to be a positive year."
Nationally, single-family housing starts decreased 9 percent to a seasonally adjusted rate of 575,000 units and multifamily production fell 9.9 percent to 318,000 units.
Building permit issuance saw a 4.2 percent decline to a seasonally adjusted annual rate of 963,000. Multifamily permits dropped 14.9 percent to 332,000 units and single-family permits increased 2.6 percent to 631,000 units.
"A modest 2.6 percent increase in single-family permits falls in line with the general optimism that we are hearing from our builders," said Kevin Kelly, chairman of the NAHB.
