Housing starts slip in April
Housing starts in April fell 3.7% percent to a seasonally adjusted annual rate of 1.287 million units from the revised March estimate of 1,336,000, the Commerce Department reported.
The latest report also puts housing starts 10.5% above the April 2017 rate of 1,165,000.
Single-family housing starts in April were at a rate of 894,000, 0.1% percent above the revised March figure of 893,000.
Privately-owned housing units authorized by building permits in April were at a seasonally adjusted annual rate of 1,352,000. This is 1.8% below the revised March rate of 1,377,000, but is 7.7% the April 2017 rate of 1,255,000. Single-family authorizations in April were at a rate of 859,000; this is 0.9% above the revised March figure of 851,000.
The drop in overall production can be attributable to a decline in the multifamily sector — which includes apartment buildings and condos — after a big uptick in March. Multifamily starts fell 11.3% in April to a seasonally adjusted annual rate of 393,000 units.
Commenting on the April’s market, NAHB chairman Randy Noel said, “We expected some pullback this month after such a strong March report, but housing starts remain at very healthy levels in April. With homeownership rates on the rise, demand for single-family homes should continue to spur production in the months ahead.”
According to NAHB chief economist Robert Dietz, the housing market is in a good position but builders will have to navigate rough terrain.
“Single-family starts are up 8.3% t for the first four months of the year relative to the start of 2017, which is higher than our forecast and bodes well for the rest of the year,” Dietz said. “However, builders must manage supply-side hurdles, such as ongoing building material price increases and shortages of land and labor, to meet growing housing demand. Lumber prices continue to rise, with recent increases adding more than $7,000 to the price of an average single-family home.”
Regionally, combined single- and multifamily housing production increased 6.4% in the South. Starts fell 8.1% in the Northeast, 12% in the West and 16.3% in the Midwest.
Permits increased 12% percent in the South but fell 4.4% in the Midwest, 13.2% in the West and nearly 32% in the Northeast.
The latest report also puts housing starts 10.5% above the April 2017 rate of 1,165,000.
Single-family housing starts in April were at a rate of 894,000, 0.1% percent above the revised March figure of 893,000.
Privately-owned housing units authorized by building permits in April were at a seasonally adjusted annual rate of 1,352,000. This is 1.8% below the revised March rate of 1,377,000, but is 7.7% the April 2017 rate of 1,255,000. Single-family authorizations in April were at a rate of 859,000; this is 0.9% above the revised March figure of 851,000.
The drop in overall production can be attributable to a decline in the multifamily sector — which includes apartment buildings and condos — after a big uptick in March. Multifamily starts fell 11.3% in April to a seasonally adjusted annual rate of 393,000 units.
Commenting on the April’s market, NAHB chairman Randy Noel said, “We expected some pullback this month after such a strong March report, but housing starts remain at very healthy levels in April. With homeownership rates on the rise, demand for single-family homes should continue to spur production in the months ahead.”
According to NAHB chief economist Robert Dietz, the housing market is in a good position but builders will have to navigate rough terrain.
“Single-family starts are up 8.3% t for the first four months of the year relative to the start of 2017, which is higher than our forecast and bodes well for the rest of the year,” Dietz said. “However, builders must manage supply-side hurdles, such as ongoing building material price increases and shortages of land and labor, to meet growing housing demand. Lumber prices continue to rise, with recent increases adding more than $7,000 to the price of an average single-family home.”
Regionally, combined single- and multifamily housing production increased 6.4% in the South. Starts fell 8.1% in the Northeast, 12% in the West and 16.3% in the Midwest.
Permits increased 12% percent in the South but fell 4.4% in the Midwest, 13.2% in the West and nearly 32% in the Northeast.