Housing starts in May dropped 4.8% from April to a seasonally adjusted annual rate of 708,000. However, compared to May 2011, housing starts are up 28.5% for the month. Single-family housing starts in May gained 3.2% month-over-month to a rate of 516,000. The multi-family component dropped 24.2% m-o-m to a rate of 179,000.

Housing permits in May increased 7.9% from April to a seasonally adjusted annual rate of 780,000, up 25% from May 2011. The single-family permits gained 4% from the prior month at a rate of 494,000 along with authorizations of units in buildings with five units or more gaining 17.7% at a rate of 266,000 in May.

Housing completions in May were at an annual pace of 598,000, down 10.3% from April but 10.1% from May 2011. The single-family component dropped 6.3% in housing completions at a rate of 458,000. The multi-family component dropped 25.7% from April to a rate of 130,000 for housing completions in May.

Source: U.S. Census Bureau and the Department of Housing and Urban Development