Residential construction numbers fell again in July, giving credence to Monday’s National Association of Home Builders’ (NAHB’s) report detailing a near ten-year low in builder enthusiasm about the new home market. The U.S. Census Bureau and Department of Housing and Urban Development said both the rate of permitting and construction starts fell from their June levels. Permits for residential construction were down 1.3 percent compared to the previous month at a seasonally adjusted annual rate of 1.674 million units. The June estimate was upgraded from 1.685 million to 1.696 million units. Permitted was 1.1 percent higher than in July 2021. Single family permits came in below the 1-million-unit rate for the second straight month at 928,000 annual units, 4.3 percent lower than in June. The permitting rate for those units is now 11.7 percent lower year-over-year. Multifamily permits were 2.5 percent higher than the prior month at 693,000, which is a 26.2 percent annual increase. The decline in permits on an unadjusted basis was more dramatic. They dropped from 157,200 in June to 133,400 in July. Single family starts fell to 75,200 from 91,500. Year-to-date (YTD), permits have totaled 1.033 million, up 1.5 percent from the same period last year. However, those for single-family construction, at 642,900, are lagging 2021 by 5.9 percent. The 359,000 permits for multifamily units represent 18.4 percent year-over-year growth. Housing starts slowed to a rate of 1.446 million in July, down 9.6 percent from June’s upwardly revised rate of 1.599 million and an 8.1 percent decline from the prior July. Single family starts fell 10.1 percent in a month and 18.5 percent on an annual basis. Multifamily starts completed the sweep, falling 10.0 percent although they were 17.4 percent higher year-over-year.
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August 16, 2022
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Housing News
Residential construction numbers fell again in July, giving credence to Monday’s National Association of Home Builders’ (NAHB’s) report detailing a near ten-year low in builder enthusiasm about the new home market. The U.S. Census Bureau and Departme... (read more)
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