In July, the commencement of privately-owned housing construction was recorded at a seasonally adjusted annual rate of 1,452,000 units. This signifies a 3.9 percent increase compared to the revised estimation of 1,398,000 units in June. Moreover, it demonstrates a 5.9 percent rise from the housing commencement rate of 1,371,000 units observed in July 2022.
In terms of single-family housing, the initiation of construction in July occurred at a rate of 983,000 units, displaying a 6.7 percent upturn from the revised June count of 921,000 units. Additionally, the construction pace for residential units situated in buildings with five units or more reached 460,000 units in July.
In July, the number of privately-owned housing units granted approval through building permits reached a seasonally adjusted annual rate of 1,442,000 units. While this indicates a minor 0.1 percent increase compared to the revised rate of 1,441,000 units in June, it stands notably lower by 13.0 percent when juxtaposed with the housing permit rate of 1,658,000 units documented in July 2022.
Concerning single-family housing approvals, July witnessed authorizations for a rate of 930,000 units, showcasing a slight 0.6 percent rise from the revised count of 924,000 units in June. Furthermore, the authorization rate for residential units located in buildings with five units or more stood at 464,000 units in July
The data presented encompasses housing construction initiations since 2000, differentiating between single-family and multi-family starts. Multi-family starts (blue, 2+ units) decreased in July compared to June, showing a 0.8% drop year-over-year. In contrast, single-family starts (red) rose in July, exhibiting a robust 9.5% increase year-over-year. It showcases the aftermath of the housing bubble with a sharp decline followed by a gradual recovery. Notably, there’s a recent drop in single-family starts. July’s housing starts were close to predictions, but revisions lowered the combined starts for May and June.