–1-Family Starts +4.7%; Overall, Areas Mixed With MW and South Lower
By Joseph Plocek
WASHINGTON (MNI) – The U.S. June housing starts data were slightly
better than expected but show continued slow housing recovery.
June housing starts printed +6.9% to 760,000 units, and permits
fell 3.7% to 755,000. The overall levels are well aligned, suggesting
continued recovery in housing.
Starts remain in a seesaw higher and are up 23.6% over the year.
Unadjusted starts also gained, as is usual in the month of June when
weather conditions turn more favorable in most parts of the country.
The June starts gain reflects 5+ units at +17% and single starts at
+4.7%. By region, starts were erratic: up 22.2% in the Northeast in a
rebound, down 7.3% in the Midwest, down 4.2% in the South, and up 36.9%
in the West.
Single-family starts were higher everywhere, led by +25.6% in the
Northeast. Single-family building permits also continue rising overall,
though the Northeast (flat this month) and Midwest (-1.2%) are lagging.
At 493,000, single-family permits are their highest in several
years. But the level remains below the 539,000 starts estimate. That
suggests there is still builder caution despite low mortgage rates and
good affordability.
June housing completions were 622,000 and units under construction
482,000.
The Commerce Department warns that it may take three months to
establish a trend in housing, but the quarterly averages for permits are
up overall and for single-families, as are the averages for starts.
Overall these data show continued housing recovery, as
expected, even as the housing market continues at about half the speed
it was posting just five years ago.
**MNI Washington Bureau: (202)371-2121**
[TOPICS: MAUDS$,M$U$$$,MT$$$$,MAUDR$]
