–Starts Weaken Across Regions, Sectors: 1-Fam Up in South in Rebound
By Joseph Plocek
WASHINGTON (MNI) – The U.S. August housing starts and permits data
continue to tell the story of a struggling sector.
August housing starts printed -5.0% to 571,000 but permits
advanced 3.2% in a rebound to 620,000.
Starts weakness was widespread. Single-family starts printed -1.4%
and 5+ units were -12.4%. By area the only gains were in multi-units in
the Midwest and West, and +7.6% in South-area single-units (also a
rebound from July’s drop).
Starts fell 29.1% in the Northeast, fell 3.3% overall in the
South, and rose 2.2% in the West. Midwest single-units fell 22.7% and
West single-units fell 2.2%.
Unadjusted starts are now down in both July and August.
Single-family permits posted +2.5% to 413,000, putting them about
in line with 417,000 single-family starts. This balance suggests little
momentum in the residential ownership sector, where foreclosures and
under-water mortgages continue to impede sales despite good
affordability and record low mortgage rates.
The ‘strength’ in permits was in 178,000 multis (that term is
relative since the number printed a mere +0.6% over the month) against a
far lower 148,000 starts. This suggests if there are gains in housing
they will stem from investment-type properties and from seeing more
renters.
The data continue to suggest the housing market will not move much
ahead. Completions fell 2.7% and units under construction fell 1.2% in
August, both hardly robust.
Overall the housing numbers were a little worse than expectations.
**Market News International Washington Bureau: (202)371-2121**
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