New Residential Construction: Housing Starts in May Boost GDP

The U.S. Census Bureau report on new residential construction shows housing starts in May rose 5% from April and 20.3% from May 2017 rate of 1,122,000. The annualized rate of 1,350,000 million hits the top end of the consensus range is a big boost to residential investment in second-quarter gross domestic product (GDP).

Building Permits

Privately-owned housing units authorized by building permits are 4.6% below the revised April rate of 1,364,000, but 18.0% higher than the May 2017 rate of 1,205,000. Single-family authorizations in May were at a rate of 844,000, or 2.2% below the revised April figure of 863,000. Authorizations of units in buildings with five units or more were at a rate of 421,000 in May.

Housing Starts

Privately-owned housing starts in May were at a seasonally adjusted annual rate of 1,350,000, or 5.0 % higher than the revised April estimate of 1,286,000 and is 20.3% higher than the May 2017 rate of 1,122,000. Single-family housing starts in May were at a rate of 936,000, or 3.9% above the revised April figure of 901,000. The May rate for units in buildings with five units or more was 404,000.

Housing Completions

Privately-owned housing completions in May were at a seasonally adjusted annual rate of 1,291,000, or 1.9% above the revised April estimate of 1,267,000 and 10.4% above the May 2017 rate of 1,169,000. Single-family housing completions in May were at a rate of 890,000, or 11.0% higher than the revised April rate of 802,000. The May rate for units in buildings with five units or more was 389,000.