Thursday, September 17, 2015

Housing Starts decreased to 1.126 Million Annual Rate in August

by Bill McBride on 9/17/2015 08:40:00 AM

From the Census Bureau: Permits, Starts and Completions

Housing Starts:
Privately-owned housing starts in August were at a seasonally adjusted annual rate of 1,126,000. This is 3.0 percent below the revised July estimate of 1,161,000, but is 16.6 percent above the August 2014 rate of 966,000.

Single-family housing starts in August were at a rate of 739,000; this is 3.0 percent below the revised July figure of 762,000. The August rate for units in buildings with five units or more was 381,000.

Building Permits:
Privately-owned housing units authorized by building permits in August were at a seasonally adjusted annual rate of 1,170,000. This is 3.5 percent above the revised July rate of 1,130,000 and is 12.5 percent above the August 2014 estimate of 1,040,000.

Single-family authorizations in August were at a rate of 699,000; this is 2.8 percent above the revised July figure of 680,000. Authorizations of units in buildings with five units or more were at a rate of 440,000 in August.
emphasis added
Total Housing Starts and Single Family Housing Starts Click on graph for larger image.

The first graph shows single and multi-family housing starts for the last several years.

Multi-family starts (red, 2+ units) decreased in August.  Multi-family starts were up year-over-year.

Single-family starts (blue)  decreased in August and are up about 15% year-over-year.

The second graph shows total and single unit starts since 1968.

Total Housing Starts and Single Family Housing Starts The second graph shows the huge collapse following the housing bubble, and then - after moving sideways for a couple of years - housing is now recovering (but still historically low),

Total housing starts in August were below expectations, and starts were revised down for June and July.   I'll have more later ...