Housing starts rebounded in July after a weak June showing, according to U.S. Census data released Tuesday.
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Privately-owned housing units authorized by building permits, a gauge of future construction, were at a seasonally adjusted annual rate of 1,152,000, down 0.1 percent from the revised June rate. Most of the gains came from an 8.3 per cent acceleration in the construction of multi-family buildings.
Single-family housing starts in July were at a rate of 770,000; this is 0.5% above the revised June figure of 766,000.
This Monday, July 25, 2016, photo, shows real estate signs at a new home community in Edmond, Okla.
Analysts say builders are concerned that demand for new homes may slow after the traditional summer buying season. Construction was up 15.5% in the Northeast and down 5.9% in the West.
Housing starts climbed in three of four regions, paced by a 3.5% gain in the South and a 2.3% increase in the Midwest.
Total housing permits, the leading indicator for future starts, decreased -0.1% overall in July, due to a -3.7% decrease in permits issued for single family homes. Multifamily construction permits rose 6.5% from June to a rate of 411,000 units, 1.7% lower than the previous year.
For now, more Americans are upgrading to newly built single-family houses. “We are well below the equilibrium run rate, and we are not going to get there for several years, and that is going to be a continuing challenge in the housing market”. And existing homes are selling at their best rate since early 2007 as more buyers are finalizing deals despite the lack of available homes for sale.
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In the Twin Cities, homebuilders saw a slight bump in permits for single-family houses in July, but the rate of growth appears to be tapering off. The majority of builders view sales conditions as favorable. For the protection of AP and its licensors, content may not be copied, altered or redistributed in any form. Doing so may result in civil and/or criminal penalties.
