New Home Starts in U.S. Dip in July; Reminder of Fragile Market Conditions Despite Signs of Recovery

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According to a new report by the U.S. Census Bureau and the Department of Housing and Urban Development (HUD), groundbreakings on new home construction unexpectedly fell in July while gains from the prior month were revised lower for July 2012.

BUILDING PERMITS

Privately-owned housing units authorized by building permits in July were at a seasonally adjusted annual rate of 812,000. This is 6.8 percent (±1.5%) above the revised June rate of 760,000 and is 29.5 percent (±1.6%) above the July 2011 estimate of 627,000.

Single-family authorizations in July were at a rate of 513,000; this is 4.5 percent (±0.8%) above the revised June figure of 491,000. Authorizations of units in buildings with five units or more were at a rate of 274,000 in July.

HOUSING STARTS

Privately-owned housing starts in July were at a seasonally adjusted annual rate of 746,000. This is 1.1 percent (±9.6%) below the revised June estimate of 754,000, but is 21.5 percent (±14.2%) above the July 2011 rate of 614,000.

Single-family housing starts in July were at a rate of 502,000; this is 6.5 percent (±8.7%) below the revised June figure of 537,000. The July rate for units in buildings with five units or more was 229,000.

HOUSING COMPLETIONS

Privately-owned housing completions in July were at a seasonally adjusted annual rate of 668,000. This is 7.1 percent (±15.9%) above the revised June estimate of 624,000 and is 5.4 percent (±15.8%) above the July 2011 rate of 634,000.

Single-family housing completions in July were at a rate of 448,000; this is 5.9 percent (±9.2%) below the revised June rate of 476,000. The July rate for units in buildings with five units or more was 209,000.