Housing Starts are Stabilizing
Housing starts increased 3.6% to an annual rate of 582,000 in June. The entire strength was from a 14.4% jump in the construction of new single-family homes to an annual rate of 470,000, while starts of multi-family units fell 25.8% in June. On a regional basis, starts of new homes increased in the Northeast (+28.6%) and Midwest (+33.3%) but fell in the South (-1.4%) and West (-14.8%). Starts of single-family homes are up 31.7% from the cycle low of 357,000 starts registered in January/February 2009.
Permit extensions rose 8.7% to an annual rate of 563,000, with permits for single-family units advancing 5.9% to an annual rate of 430,000 in June.
From a year ago, starts of single-family units fell 25.5%, representing a significant moderation in the pace of declines in home building activity (see chart 2). The main message is the production of new homes is stabilizing at a low level.
