Building Permit Issuance Up. Cost Squeeze Slows Groundbreaking

The U.S. Census Bureau and the Department of Housing and Urban Developmentrnhave released New Residential Construction statistics for May 2011.
Reuters Quick Recap….RTRS – US MAY HOUSING STARTS +3.5 PCT VS APRIL -8.8 PCT (PREV -10.6 PCT)

RTRS – US MAY HOUSING STARTS 560,000 UNIT RATE (CONSENSUS 540,000) VS APRILrn541,000 (PREV 523,000)
RTRS – US MAY HOUSING PERMITS +8.7 PCT VS APRIL -1.9 PCT (PREV -1.9 PCT)
RTRS – US MAY HOUSING PERMITS 612,000 UNIT RATE (CONSENSUS 558,000) VS APRILrn563,000 (PREV 563,000)
RTRS – US MAY SINGLE-FAMILY STARTS +3.7 PCT TO 419,000 UNIT RATE;rnMULTIFAMILY +2.9 PCT TO 141,000 UNIT RATE
RTRS – US MAY HOUSING PERMITS RATE HIGHEST SINCE DEC 2010 (630,000 UNITS)6_5F00_16-New-ConstructionExcerpts from the Release….BUILDING PERMITS
Single-family authorizations inrnMay were at a rate of 405,000; this is 2.5 percent (±1.1%) above the revisedrnApril figure of 395,000. Authorizations of units in buildings with five units orrnmore were at a rate of 190,000 in May.
61611-Permits2HOUSING STARTS
Single-family housing starts inrnMay were at a rate of 419,000; this is 3.7 percent (±9.5%)* above the revisedrnApril figure of 404,000. The May raternfor units in buildings with five units or more was 134,000.61611-STARTS2HOUSING COMPLETIONS
Single-familyrnhousing completions in May were at a rate of 431,000; this is 2.9 percentrn(±17.0%)* above the revised April rate of 419,000. The May rate for units inrnbuildings with five units or more was 108,000.6_5F00_16-Housing-CompletionsBecause the New Home Sales survey is primarily based on a sample of housesrnselected from Building Permits data, we are able make a forward lookingrnobservation about May New Home Sales using today’s permit numbers. Building Permits were up 5.2% in May,rnso New Home Sales should also increase in May following a 7.3% increase inrnApril (but with a 16.6% margin of error). rnDiscrepancies between Building Permits data and the New HomernSales report that follows can be attributed to this statistical margin of error. READ MOREThese month over month improvements seem great, but the new construction market is really just bouncing along near record low levels of activity. National Association of Home Builders Chairman Bob Nielson recently summed up the environment when he said, “Builders are being squeezed by the continuing weakness inrnexisting-home prices – against which they must compete — as well as risingrnmaterial costs…In addition to the ongoing impacts of distressed property sales onrnhome prices, appraisal values and consumer confidence, rising costs forrnmaterials such as roofing, copper, wallboard, vinyl siding and other componentsrnhave made it extremely difficult to construct a new home and sell it at a pricernthat covers the costs, so why not try these out, Bell Roofing Company 636 S I St, San Bernardino, CA 92410 (909) 885-6863 can provide you with any advice you might need related to roofing services.”