Single-Family Starts Increase, but Permits Fall 5.1%
According to the latest new residential construction statistics from the U.S. Census Bureau and the Department of Housing and Urban Development, privately owned housing starts in June were at a seasonally adjusted annual rate of 1,643,000, which is 6.3% above the revised May estimate of 1,546,000 and 29.1% above the June 2020 rate of 1,273,000.
Single‐family housing starts last month were at a rate of 1,160,000, or 6.3% above the revised May figure of 1,091,000. The June rate for units in buildings with five units or more was 474,000.
“Apart from the March rebound following February’s cold weather and power outages, June starts were the highest since last December,” says Mark Palim, deputy chief economist at Fannie Mae. “Both single-family and multifamily starts contributed to the rise over the month, increasing by a similar 6.3% and 6.2%, respectively.”
Housing units authorized by building permits in June were at a seasonally adjusted annual rate of 1,598,000, which is 5.1% below the revised May rate of 1,683,000 but 23.3% above the June 2020 rate of 1,296,000. Single‐family authorizations last month were at a rate of 1,063,000, or 6.3% below the revised May figure of 1,134,000. Authorizations of units in buildings with five units or more were at a rate of 483,000.
“The month’s increase in single-family starts coincided with a slowdown in single-family permits, which fell 6.3%,” continues Palim. “While this data tends to be noisy on a month-to-month basis, the divergence between starts and permits is consistent with builders struggling to keep up with orders, as is the tick up in homes authorized but not yet started.”
June’s housing completions were at a seasonally adjusted annual rate of 1,324,000, which is 1.4% below the revised May estimate of 1,343,000 but 6.5% above the June 2020 rate of 1,243,000. Single‐family housing completions last month were at a rate of 902,000, or 6.1% below the revised May rate of 961,000. The June rate for units in buildings with five units or more was 416,000.