Housing Starts Surge In June, But Permits Dragged Down By Multi-Family

by devteam July 19th, 2012 | Share

Housing starts and housing completionsrnwere both up in June according to new residential construction data releasedrnthis morning by the U.S. Census Bureau and the Department of Housing and UrbanrnDevelopment.  Single family building permitsrnalso rose slightly from May levels but residential permits overall declined.  </p

Permits for all privately-owned housingrnunits were issued in June at a seasonally adjusted annual rate of 755,000, arn3.7 percent drop from the upwardly revised May rate of 784,000.  May permits were originally estimated at 780,000.rn The June number is 19.3 percent higherrnthan the 633,000 permits issued in June 2011.</p

Single-family construction permits werernissued at a rate of 493,000, 0.6 percent above May which was revised downward fromrn494,000 to 490,000.  Permits forrnconstruction in buildings with five units or more were at a rate of 241,000rndown from 272,000 in May.</p

Building Permits

ChartManager.loadChart(‘permitschart’, ‘HousingPermitsChart’);


Privately owned housing starts in Junernwere at a seasonally adjusted annual rate of 760,000, a 6.9 percent increase</bover May's estimate of 711,000 and 23.6 percent higher than one yearrnearlier.  May's estimate was revised upwardrnfrom 708,000.  Single family starts increasedrn4.7 percent from a May figure of 515,000 (revised down from 516,000).  In June there were 213,000 units for whichrnconstruction was started in buildings with five or more units compared torn182,000 in May.</p

Housing Starts</p

ChartManager.loadChart(‘housingchart’, ‘HousingChart’);


There were 622,000 housing units (on arnseasonally adjusted annual basis) completed in June, up 2.6 percent from thernrevised May estimate of 606,000 (from 598,000) and 7.2 percent higher than thernJune 2011 rate of 580,000.   There werern470,000 single family units completed, up 1.3 percent from May and 134,000rnunits completed in multi-unit buildings. </p

In the Northeast the rate of permittingrnwas unchanged from May at 78,000 but this was an annual increase of 9.9rnpercent.  Housing starts were at a raternof 77,000, up 22.2 percent from the 63,000 rate estimated in May and an annualrnincrease of 42.1 percent.  </p

Permitting was down slightly in the Midwestrnto 118,000, an -0.8 percent change, but still up 16.8 percent from one yearrnearlier.  Starts were at a rate ofrn101,000, down 7.3 percent from 109,000 in May and 19.8 percent lower than onernyear earlier.</p

In the South permitting was at an annualrnpace of 379,000 units, down 8.0 percent month-over-month but up 17.3 percent inrna year. </p

The West had a permitting rate ofrn180,000, up 2.9 percent from 175,000 in May, and 30.4 percent higher than arnyear earlier.</p

At the end of June there were 88,000rnpermits outstanding, 41,500 of them for units in multi-family dwellings.  Over 45,000 of the permits for whichrnconstruction had not yet started were located in the South.  Also at the end of the period there werern482,000 units under construction, 256,000 of which were single familyrndwellings.

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About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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