Global| Jun 16 2015U.S. Housing Starts Ease; Permits Jump Again
by:Tom Moeller
|in:Economy in Brief
Summary
Housing starts during May declined 11.1% to a 1.036 million annual rate (+4.6% y/y), following a revised 22.1% rise to 1.165 million units, last month reported as 1.135 mil. May's figure fell short of expectations for 1.095 million [...]
Housing starts during May declined 11.1% to a 1.036 million annual rate (+4.6% y/y), following a revised 22.1% rise to 1.165 million units, last month reported as 1.135 mil. May's figure fell short of expectations for 1.095 million starts in the Action Economics Forecast Survey.
Permits to build housing units surged 24.9% to 1.275 million units (20.8% y/y). It came on the heels of a 9.8% April jump. The latest level of permits was the highest since August 2007, driven by a tripling in the Northeast since December. Single-family permits gained 2.6% (4.0% y/y) following a 3.7% rise. Multi-family permits rose 24.9% (50.6% y/y) after a 19.7% gain.
Single-family starts declined 5.4%% last month to 680,000 (+6.7% y/y) following a 15.4% increase. Starts to build multi-family homes fell 20.2% (+0.6% y/y) after a 34.7% April jump.
Housing starts declined m/m throughout the country. Activity in the Northeast retreated 26.5% to 139,000 (+55.4% y/y). New building fell 12.5% to 253,000 in the West (+30.2% y/y). Starts in the Midwest were off 10.2% to 149,000, down 9.6% y/y. In the South, new building eased 5.0% to 495,000 (-8.4% y/y).
The housing starts figures can be found in Haver's USECON database. The expectations figure is contained in the AS1REPNA database.
| Housing Starts (000s, SAAR) | May | Apr | Mar | May Y/Y % | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|
| Total | 1,036 | 1,165 | 954 | 4.6 | 1,001 | 928 | 784 |
| Single-Family | 680 | 719 | 623 | 6.7 | 647 | 620 | 537 |
| Multi-Family | 356 | 446 | 331 | 0.6 | 354 | 308 | 247 |
| Starts By Region | |||||||
| Northeast | 139 | 189 | 100 | 55.4 | 110 | 97 | 80 |
| Midwest | 149 | 166 | 142 | -9.6 | 159 | 149 | 129 |
| South | 495 | 521 | 511 | -8.4 | 497 | 467 | 400 |
| West | 253 | 289 | 201 | 30.2 | 236 | 217 | 175 |
| Building Permits | 1,275 | 1,140 | 1,038 | 20.8 | 1,052 | 987 | 829 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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