Steel Markets

Housing Starts Up 4.8 Percent in June

Written by Sandy Williams

Housing starts rose 4.8 percent in June to a seasonally adjusted annual rate of 1,189,000, exceeding analyst expectations for the month. On a year-over-year basis, starts were 2.0 percent lower than the rate of 1,334,000 in June 2015. May’s estimate was revised downward to 1.14 million unit rate from the previously reported 1.16 million units.

Single family housing starts jumped 4.4 percent from May while the June rate for buildings with five units or more rose 1.6 percent.

“This month’s uptick in production is an indicator that the housing market continues to move forward,” said NAHB Chairman Ed Brady. “At the same time, builders are adding inventory at a cautious pace as they face lot shortages and regulatory hurdles.”

“The June report is consistent with our forecast for a gradual but consistent recovery of the housing market,” said NAHB Chief Economist Robert Dietz. “Single-family production should continue to strengthen throughout the year, buoyed by job growth, new household formations and low mortgage interest rates.”

On a regional basis, total starts increased the most in the Northeast gaining 46.3 percent from May. Starts were 17.4 percent higher in the West but declined 5.2 percent in the Midwest and 3.4 percent in the South.

Building permits, an indicator of future residential construction, increased 1.5 percent to a 1.15 million unit rate in June. Single family authorizations were up 1 percent and multi-family increased 2.5 percent.

Permit authorizations increased 9.4 percent in the Northeast and 8.3 percent in the South. The Midwest and West saw losses of 2.8 percent and 10.1 percent, respectively.

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