Housing starts in August declined 3 percent to a seasonally adjusted annual rate of 1.126 million units from July’s rate of 1.161 million units, according to the United States Department of Housing and Urban Development.
Meanwhile, permit growth in August increased 3.5 percent to a rate of 1.17 million from July’s rate of 1.13 million.
"Permit growth indicates that our members feel confident that consumers are returning to the market," said NAHB Chairman Tom Woods in a statement. "However, builders are reporting concerns with lots and labor availability, which could have contributed to this month's production dip."
Single-family housing starts dipped 3 percent to a seasonally adjusted annual rate of 739,000 units in August while multifamily starts dropped 3 percent to 387,000 units.
Combined starts fell in the Northeast by 33.7 percent, in the Midwest by 9.8 percent and in the West by 1.1 percent. The South recorded a gain of 7.1 percent.
"A slight one-month decline is not unusual as the housing market moves forward at a slow and steady pace," said NAHB Chief Economist David Crowe in a statement. "However, encouraging permit data, year-over-year increases in single and multifamily production and rising builder confidence all bode well for a continuing, gradual recovery throughout the rest of the year."
