Home >> Daily Dose >> Unexpected Downturn
Print This Post Print This Post

Unexpected Downturn

Housing starts in July took an unexpected tumble in both the single-family and multi-unit sectors. The latest HUD/Census Bureau Report Residential Construction Activity report showed residential starts down by nearly 5 percent from June, mainly as an offshoot of a drop in apartment construction.

Privately owned housing starts in July were at a seasonally adjusted annual rate of 1.15 million. That’s 4.8 percent below the revised June estimate and 5.6 percent down from the previous July. Single-family housing starts in July were a half-percent below the revised June figure of 860,000; the rate for units in buildings with five units or more was 287,000.

Building permits also dropped noticeably compared to June. At a seasonally adjusted annual rate of just above 1.2 million, permits were down 4.1 percent in June. But they were also up 4.1 percent compared to last July. There were 811,000 single-family authorizations in July, identical top June. There were 377,000 authorizations for units in buildings with five units or more.

Danielle Hale, Chief Economist at Realtor.com, told Forbes that the drop in apartment construction “is good news for buyers since most single-family construction is built for home owners while in recent years the majority of multi-family construction has been built for renters.”

Hale added that the out-performance in single-family construction “is starting to get us closer to a historically normal balance between single-family and multi-family homes.”

Housing completions had a similar up-and-down month, depending on what the numbers are compared to. July’s 1.175 million completions for privately owned housing were 6 percent down from June, but 8 percent above where they were a year ago.

There were 814,000 single-family completions in July, down slightly from June. The July rate for units in buildings with five units or more was 354,000.

About Author: ScottMorgan1

Scott Morgan is a multi-award-winning journalist and editor based out of Texas. During his 11 years as a newspaper journalist, he wrote more than 4,000 published pieces. He's been recognized for his work since 2001, and his creative writing continues to win acclaim from readers and fellow writers alike. He is also a creative writing teacher and the author of several books, from short fiction to written works about writing.
x

Check Also

The Ups and Downs of Reverse Mortgages

A pair of recent articles examine the benefits and challenges of reverse mortgages for senior homeowners. Find out why one industry expert believes they can still be a boon to those looking to tap into their home’s equity.

GET THE NEWS YOU NEED, WHEN YOU NEED IT.

With daily content from MReport, you’ll never miss another important headline in originations, lending, or servicing. Subscribe to MDaily to begin receiving a complimentary daily email containing the top mortgage news and market information.