Global| Jun 19 2018U.S. Housing Starts Recover to 11-Year High
by:Tom Moeller
|in:Economy in Brief
Summary
Total housing starts rose 5.0% (20.3% y/y) during May to 1.350 million units (SAAR) from 1.286 million in April, revised from 1.287 million. It was the highest level of starts since July 2007. A level of 1.305 million starts had been [...]
Total housing starts rose 5.0% (20.3% y/y) during May to 1.350 million units (SAAR) from 1.286 million in April, revised from 1.287 million. It was the highest level of starts since July 2007. A level of 1.305 million starts had been expected in the Action Economics Forecast Survey.
Starts of single-family homes improved 3.9% last month (18.3% y/y) to 936,000, following a 2.2% April rise to 901,000. Starts of multi-family units rebounded 7.5% to 414,000 units after a 13.5% decline to 385,000 units.
The rise in starts last month was dominated by the Midwest where housing starts surged by roughly two-thirds both m/m and y/y to 266,000. That followed a 9.9% April decline. Elsewhere around the country housing starts fell. Housing starts in the Northeast were off 15.0% (+20.0% y/y) to 102,000, the lowest level since December. Starts in the West fell 4.1% (+4.8% y/y) to 329,000, the lowest level since September. Starts in the South eased 0.9% (+16.8% y/y) to 653,000 after a 4.6% gain.
Building permits declined 4.6% (+8.0% y/y) to 1.301 million units following a 0.9% April fall. Single-family permits were off 2.2% (+7.7% y/y) to 844,000 after a 1.4% rise. Permits to build multi-family homes fell 8.8% (+8.6% y/y) to 457,000, after declining 4.8%.
The housing starts and permits 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 % | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|
| Total | 1,350 | 1,286 | 1,327 | 20.3 | 1,203 | 1,174 | 1,112 |
| Single-Family | 936 | 901 | 882 | 18.3 | 859 | 782 | 715 |
| Multi-Family | 414 | 385 | 445 | 25.1 | 354 | 392 | 397 |
| Starts By Region | |||||||
| Northeast | 102 | 120 | 120 | 20.0 | 111 | 116 | 138 |
| Midwest | 266 | 164 | 182 | 62.2 | 180 | 182 | 153 |
| South | 653 | 659 | 630 | 16.8 | 599 | 585 | 556 |
| West | 329 | 343 | 395 | 4.8 | 313 | 291 | 265 |
| Building Permits | 1,301 | 1,364 | 1,377 | 8.0 | 1,282 | 1,207 | 1,183 |
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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