Housing Production Falls 6.5% in May; Single-Family Permits Rise

 

 

 

 

 

 

 

 

Kennesaw’s Ashford Capital Partners’ Managing Partners Matthew Riedemann brings you news you can use.

Declines in both single- and multifamily starts pushed nationwide housing production down 6.5% in May to a seasonally adjusted annual rate of just over 1 million units, according to newly released figures from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. However, single-family permits, which can be an indicator of future building activity, rose 3.7%.

Single-family housing starts dipped 5.9% to a seasonally adjusted annual rate of 625,000 units in May. On the multifamily side, production fell 7.6% to a seasonally adjusted annual rate of 376,000 units.

“The encouraging news is that single-family permits are up by almost 4%,” said NAHB Chief Economist David Crowe. “The modest increase is evidence that builders expect continued release of pent-up demand and a gradual expansion of the housing market. We are still forecasting a 12% increase in total housing starts for the year.”

Combined single- and multifamily production was down in most of the country. The Northeast, the Midwest and the West posted respective losses of 25.2%, 16.5% and 16.3%. The one exception was the South, which registered a 7.3% gain.

Issuance of building permits registered a 6.4% decline to a seasonally adjusted annual rate of 991,000 units in May. This was due entirely to a decrease in the multifamily sector, where permits registered a 19.5% loss to 372,000 units. Single-family permits increased to 619,000 units.

Come back tomorrow to www.AshfordCP.com/blog  where Kennesaw’s Ashford Capital Partners’ Managing Partners Matthew Riedemann brings you news you can use.

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