After a 12.3 percent slump in June, privately-owned housing starts inched up 0.9 percent in July to a seasonally adjusted annual rate of 1.17 million, according to the U.S. Census Bureau and U.S. Department of Housing and Urban Development.
After a 12.3 percent slump in June, privately-owned housing starts inched up 0.9 percent in July to a seasonally adjusted annual rate of 1.17 million, according to the U.S. Census Bureau and U.S. Department of Housing and Urban Development.
The rate is 1.4 percent below the July 2017 rate of 1.18 million. Compared with June 2018, the single -family housing starts category rose 0.9 percent to a rate of 862,000, while multifamily housing starts rose about 3 percent to 303,000.
Regionally, housing starts jumped 11.6 percent in the Midwest and 10.4 percent in the South. The Northeast and West saw declines of 4.0 percent and 19.6 percent, respectively, largely due to increasing affordability constraints in the coastal markets, according to the National Association of Home Builders (NAHB).
Building permits issued in July rose 1.5 percent from June to a rate of 1.31 million, a 4.2 percent increase compared with the number of permits issued in July 2017. Permits for single-family homes increased 1.4 percent from June 2018 to a rate of 869,000 and multifamily unit permits were at a rate of 410,000.
The number of single-family units authorized but not yet started is up by 25 percent since July 2017— a sign of increased construction delays, according NAHB.
“Supply-side challenges including increases in material prices and chronic labor shortages are affecting affordability in many markets,” NAHB Chief Economist Robert Dietz said in a statement. “However, consumer demand remains strong due to a growing economy and job market and favorable demographics.”
Housing completions in the U.S. fell 1.7 percent from June to a rate of 1.19 million, which is 0.8 percent below the July 2017 rate of completions.