MNI DATA IMPACT: US June Starts Pace Slows To 1.253m SAAR>

--June Building Permits Plunge 6.1% to 1.222m SAAR, Low Since May 2017

By Kevin Kastner and Brooke Migdon

     WASHINGTON (MNI) - The pace of housing starts fell by 0.9% to a 

1.253 million seasonally adjusted annual rate in June, slightly below 

expectations for a 1.260 million rate according to an MNI survey of 

analysts and the Bloomberg consensus, data reported by the Department of 

Commerce Wednesday morning indicated. 

     Here are some of the key takeaways from the data: 

     - Single-family housing starts rose by 3.5% in June after a 5.1% 

decline in the previous month, while multi-family starts were down 9.2% 

in June, based on an MNI calculation. However, the share of total starts 

represented by multi-family units still rose to 32.4% in June from 27.6% 

a year ago, while the share of single-family starts has slowed to 67.6% 

from 72.4% over that same period. Affordability and supply are key 

issues. 

     - Housing starts increased 31.3% in the Northeast and 27.1% in the 

Midwest, but starts in the relatively larger South and West region 

slipped.  

     - Building permits fell 6.1% in the month to a 1.220 million rate 

after a 0.7% increase to 1.299 million in May. Single-family permits 

rose by 0.4% to a 813,000 annual rate, while multi-family permits 

declined by 16.8%. Homes permitted but not started were down 4.6% in 

June, suggesting housing starts could decrease further in the near 

future. 

     - Homes under construction were up in June, but completions were 

down 4.8%, indicating a potential reduction in new home supply in the 

coming months. 

     - The second quarter average for starts, at 1.263 million, was well 

above the first quarter average of 1.213 million after revisions are 

included. The second quarter average for permits was 1.270 million,  

below the 1.297 million first quarter average. 

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

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