New Residential Construction: Housing Starts, Building Permits Fell in June

New residential homes are shown under construction in Carlsbad, California September 19, 2011. (Photo: Reuters)

The new residential construction report finds housing starts and building permits fell in June far more than expected.

Housing Starts

Privately-owned housing starts in June were at a seasonally adjusted annual rate of 1,173,000, or 12.3% (±8.3%) below the revised estimate of 1,337,000 in May. It is 4.2% (±10.2%)* below the June 2017 rate of 1,225,000. Single-family housing starts in June were at a rate of 858,000, a decline of 9.1% (±8.8%) from the revised figure in May of 944,000.

The June rate for units in buildings with five units or more was 304,000.

Building Permits

Privately-owned housing units authorized by building permits in June were at a seasonally adjusted annual rate of 1,273,000. That’s 2.2% (±1.2%) below the revised May rate of 1,301,000 and is 3.0% (±1.1%) below the June 2017 rate of 1,312,000. Single-family authorizations in June were at a rate of 850,000; this is 0.8% (±1.5%)* above the revised May figure of 843,000.

Authorizations of units in buildings with five units or more were at a rate of 387,000 in June.

Housing Completions

Privately-owned housing completions in June were at a seasonally adjusted annual rate of 1,261,000. This is 0.0% (±11.3%)* below the revised May estimate of 1,261,000, but is 2.2% (±14.5%)* above the June 2017 rate of 1,234,000. Single-family housing completions in June were at a rate of 862,000; this is 2.3% (±8.4%)* below the revised May rate of 882,000.

The June rate for units in buildings with five units or more was 393,000.