Housing Starts Jump 9.2%, Permits Decline 5.7%

Housing starts are up but permits are down. The current overall level of activity is less than occurred in 1962.

This morning, the Census Bureau released its New Residential Construction Report for August.

Building Permits

Privately-owned housing units authorized by building permits in August were at a seasonally adjusted annual rate of 1,229,000. This is 5.7 percent below the revised July rate of 1,303,000 and is 5.5 percent below the August 2017 rate of 1,300,000.

Single-family authorizations in August were at a rate of 820,000; this is 6.1 percent below the revised July figure of 873,000. Authorizations of units in buildings with five units or more were at a rate of 370,000 in August.

Housing Starts

Privately-owned housing starts in August were at a seasonally adjusted annual rate of 1,282,000. This is 9.2 percent above the revised July estimate of 1,174,000 and is 9.4 percent above the August 2017 rate of 1,172,000.

Single-family housing starts in August were at a rate of 876,000; this is 1.9 percent above the revised July figure of 860,000. The August rate for units in buildings with five units or more was 392,000.

Housing Completions

Privately-owned housing completions in August were at a seasonally adjusted annual rate of 1,213,000. This is 2.5 percent above the revised July estimate of 1,183,000 and is 11.2 percent above the August 2017 rate of 1,091,000.

Single-family housing completions in August were at a rate of 923,000; this is 11.6 percent above the revised July rate of 827,000. The August rate for units in buildings with five units or more was 285,000.

Starts and Permits 1960-Present

January 1962

  • Starts: 1,361,000
  • Permits: 1,122,000

August 2018

  • Starts: 1,282,000
  • Permits: 1,229,000

There were more starts in 1962 than today. People cannot afford houses.

Mike "Mish" Shedlock

Comments (4)
No. 1-2
KidHorn
KidHorn

Florence will give a boost to permits and starts over the next few months.

hmk
hmk

I would think its either affordability or labor shortages. Send thank you's to Janet and Ben.