Building across the US remained strong with single family housing starts increasing, while multi family starts leveled off from a an exceptional month of June.
Single-family start-ups increased 13% from June and have now topped an annualized rate last seen in January 2008. The total number of single-family housing starts has increased over a three month moving average for every period since 2011.
Due to the unusually high level of multi-family start-ups seen in June, July housing starts fell slightly. In June, housing starts went up 28.6% compared to May and hit an annualized rate of 476k homes per year. July fell back to more normal numbers—back to an annualized rate of 440k home start ups a year.
Building permits declined by 16.3% over this time period. Renting will continue to be in high demand across the nation as newly formed households generally have yet to jump out of the rental market to buy a home. Locally, builders have been adding home inventory and permits increased significantly last year. Builders still have concerns with affordability of lots and the cost of skilled labor and those issues may also be impacting the total number of approved permits. Builders have and will continue to add home inventory to the United States Housing Market, helping to lower home values. As more buyers jump into the market, builders will be even more willing to take on additional lots.