The rate of building permits and housing decreased from its levels in May last month. The large increase in estimates from April to May has also been revised downward. The US Census Bureau and Department of Housing and Urban Development reported that housing starts in June were at a seasonally adjusted rate of 1.434 million units. This is down 8.0 percent from the 1,559 rate posted for May, a revision from the original estimate of 1.631 million. The pace of housing construction is now 8.1 percent lower than it was in June 2022. Single-family households declined 7.0 percent from May’s rate of 1.005 million units to 935,000 units, and homes beginning with five or more units decreased 11.6 percent to 482,000 units. Single-family starts were 7.4 percent and multiple-family starts were 11.2 percent lower than the previous year’s rates. On an unadjusted basis, the number of starts during the month is estimated at 133,800 compared to 143,500 in the prior month. Single-family starts are basically unchanged at just over 90,000 units. Residence permits were issued at a seasonally adjusted rate of 1.440 million units, down 3.7 percent from the May estimate of 1,496 units and 15.3 percent from the pace in May 2022. Single-family permits rose 2.2 percent to 922 thousand units, down 2.7 percent year-on-year. The annual rate of multi-family building permits of 467,000 was down 13.5 percent for the month and 33.1 percent year-over-year. Pre-seasonally adjusted, 135,500 permits were issued in June, 90,800 of which were for single-family homes. The numbers for May were 139,600 and 88,900. The forecast for June was close to the actual number of starts but exceeded the pass target. Analysts polled by Econoday reached a consensus of 1.480 million starts and 1.483 million statements. 127,800 housing units were completed in June including 84,500 single-family homes with little change on a monthly basis to either figure. For the year-to-date (YTD), the number of completions is 699,600, up 7.8 percent from the same period last year. Single-family completions decreased 1.2 percent to 482,000, and multi-family completions increased 35.7 percent to 212,400 units. So far in 2023, there have been 713,800 constructions, of which 449,700 are single-family homes. For the first six months of 2022, the relevant numbers are 839,500 and 570,100. Multi-family startups fell 1.3 percent to 257,200 units. Permit was down across the board during the first half of the year. Total permits decreased 19.2 percent, single-family permits decreased 21.5 percent, and multi-family permits decreased 16.6 percent. At the end of the reporting period, there were 1.682 million units under construction including 688,000 family units and 977,000 multi-family units. In addition, there are 281,000 unused permits to date, distributed roughly evenly between single and multi-family units. Permits were down 24.4 percent from May and 30.0 percent from the previous June in the Northeast. Start decreased by 2.1% and 25.2%. The Midwest saw a 5.9 percent increase in permits for the month, but was down 2.0 percent year over year. Startups are down 33.1% compared to May and down 21.0% year over year. In the south, permits decreased by 2.6 percent and 13.8 percent from the previous two periods. Starts were also lower, at 4.4 percent and 3.2 percent. Permits fell 4.0 percent for the month in the West and 20.00 percent from the previous June, falling 1.2 and 6.6 percent, respectively.
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