MNI DATA IMPACT: US July Starts Pace Slows To 1.191m SAAR>

--July Building Permits Up 8.4% to 1.336m SAAR

By Brooke Migdon and Alexandra Kelley

     WASHINGTON (MNI) - The pace of housing starts fell by 4.0% to a 

1.191 million seasonally adjusted annual rate in July, slgihtly below 

expectations for a 1.257 million rate according to an MNI survey of 

analysts, data reported by the Commerce Department Friday morning 

indicated. 

     Here are some of the key takeaways from the data: 

     - Single-family housing starts slowed by 1.3% in July after a 6.3% 

increase in the previous month, while multi-family starts were down 

16.2% in July, based on an MNI calculation. The share of total starts 

represented by multi-family units declined to 26.4% in July from 27.4% a 

year ago, while the share of single-family starts has slowed to 73.6% 

from 72.6%. Affordability and supply are key issues. 

     - Housing starts decreased 13.8% in the Northeast, 6.2% in the 

Midwest and dropped by 4.3% in the South. Sales in the West recovered 

from a negative reading in June, increasing by 1.3% in July. 

     - Building permits rose 8.4% in the month to a 1.336 million rate 

after falling by 5.5% to 1.232 million in June. Single-family permits 

rose by 1.8% to a 838,000 annual rate and multi-family permits also

increased by 21.8%. Homes permitted but not started were up 4.9% in 

July, suggesting housing starts could increase further in the near 

future. 

     - Homes under construction were down in July, while completions 

were up 7.2%, indicating a potential reduction in new home supply in 

the coming months.  

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

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