Housing starts in July rose 0.9% from June to a seasonally adjusted annual rate of 1,168,000, 1.4% behind the pace of July, 2017, the Commerce Department reported Thursday. Economists were looking for a rate of 1.27 million, according to MarketWatch.
Single-family housing starts in July were at a rate of 862,000, also 0.9% above a revised June figure of 854,000.
Starts were dragged down by a 19.6% decline in all starts in the west and a 10% drop in single-family starts in that region.
Building permits in July were at a seasonally adjusted annual rate of 1,311,000, 1.5% above the revised June rate of 1,292,000 and 4.2% above the July 2017 rate of 1,258,000. Single-family authorizations in July were at a rate of 869,000, 1.9% above the revised June figure of 853,000.
Housing completions in July were at a seasonally adjusted annual rate of 1,188,000, 1.7% below the revised June estimate of 1,209,000 and 0.8% below the July 2017 rate of 1,197,000. Single-family housing completions in July were at a rate of 814,000, 5.2% below the revised June rate of 859,000.
“After last month’s decline, July’s total residential permits bounced back and grew 4.2%, with single-family permits up 6.4% from a year ago,” said Freddie Mac Chief Economist Sam Khater. “However, it’s clear that the growth rate of single-family construction peaked in late 2017 and has been decelerating this year.
Khater continued, “Single-family construction permits have grown 7.2% so far this year – compared to 10.0% last year – and the bulk of the slowdown has been in the South. Given the chronic lack of affordable housing and rapidly escalating home prices, it is worrisome that on a per capita basis, the country is producing new single-family housing stock at a rate that is similar to the trough of a typical recession.”
