Housing Starts Fall Below Expectations in June

Housing starts in June were at a disappointing 549,000 pace, well below economists’ expectations of 580,000.

From The US Census Bureau:

BUILDING PERMITS

Privately-owned housing units authorized by building permits in June were at a seasonally adjusted annual rate of 586,000. This is 2.1 percent (±2.1%)* above the revised May rate of 574,000, but is 2.3 percent (±2.0%) below the June 2009 estimate of 600,000. Single-family authorizations in June were at a rate of 421,000; this is 3.4 percent (±1.8%) below the revised May figure of 436,000. Authorizations of units in buildings with five units or more were at a rate of 145,000 in June.

HOUSING STARTS

Privately-owned housing starts in June were at a seasonally adjusted annual rate of 549,000. This is 5.0 percent (±13.2%)* below the 13.2%) revised May estimate of 578,000 and is 5.8 percent (±10.5%)* below the June 2009 rate of 583,000. Single-family housing starts in June were at a rate of 454,000; this is 0.7 percent (±10.7%)* below the revised May figure of 457,000. The June rate for units in buildings with five units or more was 88,000.

Calculated Risk adds:

This is way below expectations of 580 thousand (I took the under!), and is good news for the housing market longer term (there are too many housing units already), but bad news for the economy and employment short term.