Single Family Housing Starts Continue to Decline

July Housing Starts and Permits both came in below expectations, with Single Family Housing Starts falling 4.2 percent from June.

From The U.S. Census Bureau:

BUILDING PERMITS

Privately-owned housing units authorized by building permits in July were at a seasonally adjusted annual rate of 565,000. This is 3.1 percent (±2.0%) below the revised June rate of 583,000 and is 3.7 percent (±2.2%) below the July 2009 estimate of 587,000. Single-family authorizations in July were at a rate of 416,000; this is 1.2 percent (±1.2%)* below the revised June figure of 421,000. Authorizations of units in buildings with five units or more were at a rate of 129,000 in July.

HOUSING STARTS

Privately-owned housing starts in July were at a seasonally adjusted annual rate of 546,000. This is 1.7 percent (±9.7%)* above the 9.7%) revised June estimate of  537,000, but is 7.0 percent (±7.5%)* below the July 2009 rate of 587,000. Single-family housing starts in July were at a rate of 432,000; this is 4.2 percent (±8.7%)* below the revised June figure of 451,000. The July rate for units in buildings with five units or more was 95,000.

HOUSING COMPLETIONS

Privately-owned housing completions in July were at a seasonally adjusted annual rate of 587,000. This is 32.8 percent (±6.8%) below the revised June estimate of 874,000 and is 25.4 percent (±7.3%) below the July 2009 rate of 787,000. Single-family housing completions in July were at a rate of 490,000; this is 27.5 percent (±7.6%) below the revised June rate of 676,000. The July rate for units in buildings with five units or more was 91,000.

Calculated Risk adds:

This (graph) shows the huge collapse following the housing bubble, and that housing starts have mostly been moving sideways for over a year – with a slight up and down over the last several months due to the home buyer tax credit.