Two important measures of strength in
the housing and construction industries moved substantially higher in July the
U.S. Census Bureau and the Department of Housing and Urban Development said
today. The number of permits issued and
construction starts both jumped while housing completions were also up. In addition today's report revised
significantly upward the relatively dismal June numbers released last month for
all three construction elements.
In July permits were issued for construction
of privately owned residential housing at a seasonally adjusted annual rate of 1,052,000
units. This was an increase of 8.1
percent from the June rate of 973,000 units and was 7.7 percent higher than the
estimate for July 2013 of 977,000. June
permits were originally estimated to be at the rate of 963,000 units.
Single family home permits were issued
at a rate of 640,000, 0.9 percent above the revised figure (from 631,000) of
634,000 units. Construction in buildings
with five or more residential units was authorized at the rate of 382,000
compared to 309,000 units in June, an increase of 23.6 percent.
Housing starts in July were estimated to
be at a seasonally adjusted annual rate of 1,093,000. This represents a surge of 15.7 percent compared
to June's revised estimate of 945,000, itself a significant revision from the
893,000 units originally reported. The
July estimate is 21.7 percent above the rate of housing starts in July 2013 of
Single family home starts rose 8.3
percent from the revised June estimate of 606,000 to 656,000. June's single-family starts were reported
last month at 575,000. Starts of units
in buildings with five or more were at the rate of 423,000, 33 percent higher
than starts in June.
Housing completions were at the rate of
841,000, up 3.7 percent from the revised June estimate of 811,000 and 8.0
percent higher than in July 2013 when 779,000 units were completed. June's completions were originally estimated
The rate of single-family completions in
July was 635,000, up 6.2 percent from June rate of 598,000. Completions of multifamily units was at a
rate of 199,000 compared to 208,000 in June.
On a non-seasonally adjusted basis
housing permits were issued for 97,100 units, 61,000 of which were single
family units compared to 92,300 and 61,100 permits in June. Year-to-date there have been 602,500 permits
issued, a 6.1 percent increase over the same period in 2013.
Construction starts numbered 101,000 and
single family starts 61,600 in July; the numbers were 90,500 and 62,200 in
June. Thus far this year construction
has started on 584,900 units, an increase of 9.1 percent over construction
starts by the end of July 2013.
There were 70,500 housing units
completed in July, 51,800 of which were single family housing compared to
71,600 and 51,900 in June. Housing
completions year-to-date total 462,500, 14.3 percent more than a year earlier.
In the Northeast permits increased 18.8
percent from June and 5.3 percent from one year earlier. Housing starts were 44.0 percent above the
rate in June and 26.3 percent higher than the same month in 2013. Completions dropped by 15 percent from June
and were 20.9 percent below the rate the previous July.
Permits in the Midwest were issued at a
rate 0.6 percent below the previous month but 17.0 percent above that of July
2013. Housing starts were down by a
quarter from the month before but were 1.9 percent higher than a year earlier.
Completions were a slight 0.7 percent higher than the previous month but were
26.4 percent above the rate in July 2013.
The South had an increase in permits
issued of 9.6 percent compared to June and 8.6 percent relative to July 2013. Housing starts jumped by 29.0 percent from
July and 27.4 percent compared to the previous year. Completions rose by 6.2 percent from the
month before and were 13.2 percent above the level a year earlier.
Permitting was up by 7.2 percent
month-over-month and 0.08 percent year-over-year in the West and housing starts
increased by 18.6 percent and 23.4 percent respectively. Completions were 9.1 percent above the rate in
June but 1.0 percent lower than a year earlier.
The report estimates that on a
non-seasonally adjusted basis there were 804,100 units under construction at
the end of July. An estimated 363,800
are single family houses and 430,400 are units in buildings with five or more
units. The Northeast has an estimated
121,800 units and the Midwest an estimated 125,200 units under construction;
building is underway on 358,300 units in the South and 198,800 in the West.
At the end of the reporting period there
were an estimated 110,800 permits outstanding for which construction had not
been started; 58,300 permits were for single family units and 50,600 for units
of multi-family housing.