Please wait as we prepare your PDF file ....

Mission Chronicle Blog

Search Blog

our goal is to help you stay informed by providing timely and interesting articles.

July housing starts take turn for the worse

08/17/2017

Download PDF

June’s housing starts report was heralded as “welcome news” by National Association of Realtors (NAR) Chief Economist Lawrence Yun, who said increasing residential construction was the key to lowering home prices.

This month, however, housing starts have taken a turn for the worse.

According to the U.S. Department of Housing and Urban Development, July privately-owned housing permits were at a seasonally adjusted rate of 1,223,000 — a 4.1 percent month-over-month decrease from June’s revised rate of 1,275,000, and a 4.1 percent year-over-year increase from the July 2016 rate of 1,175,000.

Single-family housing permits were at a rate of 811,000 — unchanged from June.

Construction starts suffered a blow as well. Privately-owned housing starts experienced a 4.8 percent month-over-month and 5.6 percent year-over-year decrease to a seasonally adjusted rate of 1,155,000.

6 ways empowered agents embrace disruption to drive success Using technology to generate leads and win listings READ MORE

Single-family housing starts decreased 0.5 percent month-over-month to a rate of 856,000.

Lastly, privately-owned housing completions dipped 6.2 percent month-over-month to 1,175,000 — but are still 8.2 percent higher than last year. Single-family completions were at a rate of 814,000 — 1.6 percent below June’s rate of 827,000.

Yun says the housing shortage and its effects will only “intensify” if builders don’t ramp up construction.

“The housing shortage in America will intensify if new construction remains as lackluster as it was in July,” Yun said in a blog post. “The softening multifamily housing starts brought down the overall new housing unit additions to the second lowest monthly activity this year.

“Moreover, the latest 15 percent drop in multifamily housing starts and 0.5 prcent drop in single family starts will hold back economic growth potential,” he added. “Because of this continued shortage, expect rents and home prices to rise by at least twice as fast as the broad consumer price index.”

About the report

Metrics from the New Residential Construction report measure new, privately owned housing units, excluding manufactured (mobile) homes. The U.S. Census Bureau and the United States Department of Housing and Urban Development (HUD) collect the data from the Building Permits Survey and from the Survey of Construction, which is partially funded by HUD.

The Building Permits Survey produces estimates of the number of permits issued for new housing units based on a mail survey of a sample of permit offices.

The Survey of Construction produces monthly estimates of housing starts and completions; Census Bureau field representatives sample individual permits within a sample of permit offices and then interview the builders or owners who took out the sampled permits to obtain start and completion dates, as well as sale dates and characteristics, such as size and number of bedrooms.

Field representatives also drive roads looking for new residential construction activity in land areas where building permits are not required.

Email Marian McPherson.

Source: click here

Read More

INSPIRED, INTELLIGENT, INSIGHTFULL

STAY INFORMED WITH TIMELY AND INTERESTING ARTICLES FROM OUR BLOG, MISSION CHRONICLE. OUR ASPIRATION IS TO PROVIDE REALTORS AND OTHER REAL ESTATE INDUSTRY PROFESSIONALS WITH EXCEPTIONAL RESOURCES AND SHARE OUR KNOWLEDGE TO PROPEL YOU TO YOUR GOALS.

  • How urban buyers are creating space and redefining how they live

    We’ve all experienced the shift this year: luxury buyers opting for spacious homes in the suburbs ...

  • Realable puts a unique spin on virtual tours

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Navigating the long-term decentralizing of work (part 2 of 2)

    As interest in urban condos fluctuates and suburban mansions see multiple offers, the shift to decen...

  • Growth-oriented Keap hits most of the CRM high notes

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • What the decentralizing of work means for your market (part 1 of 2)

    Successful professionals in business and finance are some of the leading buyers and sellers of luxur...

  • Part Instagram, part Pinterest, property search gets social with Rila

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Where do buyers want to retreat to this year?

    For luxury real estate buyers, the search has begun for homes where the nearest neighbors are large ...

  • Manage leads, listings and loans with Townify

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • 3 trending outdoor amenities buyers are looking for

    Easy access to the conveniences consumers once enjoyed outside their homes — from spas to gyms to ...

  • OpenFrame brings new twists to its virtual home tour app

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

October 2020
Mon Tue Wed Thu Fri Sat Sun
 1234
567891011
12131415161718
19202122232425
262728293031  

  • Polls

    What information you are looking for?

    View Results

    Loading ... Loading ...
  • Last month Results

    How Is My Site?

    • Good (100%, 3 Votes)
    • Excellent (0%, 0 Votes)
    • Bad (0%, 0 Votes)
    • Can Be Improved (0%, 0 Votes)
    • No Comments (0%, 0 Votes)

    Total Voters: 3

    Vote

    Loading ... Loading ...