**MNI 5 THINGS: US Starts Fall In June To 1.173m>

--5 Things We Learned From June New Residential Construction Data

By Kevin Kastner, Harrison Clarke, and Shikha Dave

     WASHINGTON (MNI) - The following are the key points from the June 

new residential construction data released Wednesday by the Commerce 

Department: 

     - June housing starts fell by 12.3% to a 1.173 million annual rate, 

below the 1.320 million pace expected due to widespread declines. This 

followed downward revisions to the April and May data. Second quarter 

starts averaged 1.262 million, down from 1.317 million in the first 

quarter, and suggesting that residential building is a drag for second 

quarter GDP. 

     - Starts were down in all regions, with the steepest decline in the 

Midwest at 35.8%.

     - Permits posted a 2.2% decline to a 1.273 million rate, lower 

than the 1.335 million rate expected. Homes permitted but not started 

rose by 1.3%. The recent levels of permits suggest that this category, 

as well as starts eventually, could partially rebound in the coming 

months. The NAHB index was unchanged in July when it was released on 

Tuesday. 

     - Single-family housing starts declined 9.1% in June, while 

multi-family starts declined by 19.8%. Single-family building permits 

rose 0.8%, while multi-family permits were down -7.6%. 

     - Homes under construction were down 0.5% in June, while 

completions were unchanged at 1.261 million. These categories 

should move higher in the coming months as the pace of starts and 

permits rebounds. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$,MAUDR$]