Multifamily Dip Drives Housing Starts Lower in JuneJuly 18th, 2013 by DWM Magazine
Nationwide housing starts declined 9.9 percent to a seasonally adjusted annual rate of 836,000 units in June as construction of multifamily buildings slowed following recent months of strong activity in that sector, according to newly released figures from HUD and the U.S. Census Bureau. Meanwhile, the pace of single-family production held fairly even, with a decline of less than one percentage point.
“The large dip in multifamily production in June follows a boost of activity in May, and is consistent with the volatility that has come to characterize that sector as well as the uneven pace of the housing recovery,” says NAHB chief economist David Crowe. “That said, the fact that single-family starts and permits both rose in three out of four regions in June is a positive sign that’s in keeping with our forecast as well as recent surveys in which single-family builders have registered an increasingly positive outlook.”
The annualized rate of multifamily production declined 26.2 percent to 245,000 units in June after a 28.2-percent gain in the previous month. Meanwhile, single-family construction slipped by a marginal 0.8 percent to a 591,000-unit pace.