Privately owned housing starts in May were at a seasonally adjusted annual rate of 974,000, 4.3% above the revised April estimate of 934,000 but 23.2% below the May 2019 rate of 1,268,000, according to the Census Bureau and the Department of Housing and Urban Development on Wednesday.
Single-family housing starts in May were at a rate of 675,000, .1% above the revised April figure of 674,000. May’s rate for units in buildings with five or more units was 291,000, up 16.9% from April.
Housing units authorized by building permits last month were at a seasonally adjusted annual rate of 1,220,000, 14.4% above the revised April estimate of 1,066,000 but 8.8% below the May 2019 rate of 1,338,000.
Single-family authorizations were at a rate of 745,000 in May, 11.9% above the revised April figure of 666,000. Authorizations for units in buildings with five or more units were at a rate of 434,000 last month, up 18.3% from April.
In May, single-family housing completions were at a rate of 791,000, 9.8% below the revised April rate of 877,000. May’s rate for units in buildings with five or more units was 310,000, down 2.2% from April.
The NAHB points to the new residential construction numbers, low interest rates, and an increase in mortgage applications as positive signs for continued growth for the housing market.
“The May housing report is consistent with the positive results of the NAHB/Wells Fargo builder sentiment index, and we expect this momentum to continue as economic activity recovers,” said NAHB chief economist Robert Dietz. “In another promising sign, single-family permits are up almost 2% on a year-to-date basis, and builders are bringing back thousands of workers laid off in March and April to meet renewed demand.”Read More