May housing starts climbed up 4.3% from April’s historic 30.2% plunge, growing to a seasonally adjusted annual rate of 974,000, the U.S. Census Bureau reports. The rate remains 23.2% below housing starts in May 2019.
While housing starts remained low compared with pre-pandemic rates, National Association of Home Builders Chief Economist Robert Dietz stated that a turning point could be found in permits issued during the month, which increased 14.4% from April to a rate of 1.06 million. Single-family authorizations in May also climbed 12% to a rate of 745,000.
“Total permits for single-family homes issued in 2020 on a year-to-date basis are 1.8% greater than the first five months of 2019,” Dietz stated. “An increase in the pace of permits signals gains for single-family starts ahead.”
Regionally, housing starts grew month-over-month in the Northeast and West by 12.8% and 69.8%, respectively. Starts declined in the Midwest and South by 1.5% and 16.0%, respectively.
Housing completions fell 7.3% in May and are down 9.3% year-over-year.
The full Census Bureau report can be found here.
