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By Kerry Smith<\/div><\/div>\n

Single-family housing permits \u2013 a sign of future construction activity \u2013 increased marginally by 0.6%, though overall permits dropped 13.9% as multifamily slows.<\/span><\/span><\/p>\n<\/div>\n

WASHINGTON \u2013 July\u2019s overall housing starts increased 3.9% to a seasonally adjusted annual rate of 1.45 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.<\/span><\/span><\/p>\n

Housing start counts are based on a full year, and the July reading of 1.45 million is the number of housing units that would be built if July\u2019s pace continued for the next 12 months.<\/span><\/span><\/p>\n

Within that overall number, single-family starts increased 6.7% month-to-month to 983,000 \u2013a seasonally adjusted annual rate \u2013 and they increased 9.5% year-to-year.<\/span><\/span><\/p>\n

The multifamily sector, which includes apartment buildings and condos, decreased 1.7% to an annualized 469,000 pace.<\/span><\/span><\/p>\n

\u201cWith many homeowners choosing to stay in their existing home to preserve their low mortgage rate, demand for new home construction pushed up single-family starts in July even as builders continue to struggle with increased uncertainty stemming from rising (mortgage) rates,\u201d says Alicia Huey, chairman of the National Association of Home Builders (NAHB), noting that this month\u2019s builder sentiment index fell for the first time in seven months, due to a decline in buyer traffic.<\/span><\/span><\/p>\n

\u201cTotal permits declined 13% compared to a year ago, indicating that builders are slowing construction activity as housing costs rise,\u201d says Danushka Nanayakkara-Skillington, NAHB\u2019s assistant vice president for forecasting and analysis. \u201cIn fact, multifamily permits are at their lowest three-month moving average since December 2020, another sign that the market is cooling.\u201d<\/span><\/span><\/p>\n

The number of single-family units currently under construction fell 16.9% year-to-year, but the number of apartments under construction increased to 1 million, the highest total on record.<\/span><\/span><\/p>\n

On a regional and year-to-date basis, combined single-family and multifamily starts are 17.6% lower in the Northeast, 13.8% lower in the Midwest, 9.4% lower in the South and 16.7% lower in the West.<\/span><\/span><\/p>\n

Overall permits increased 0.1% to a 1.44 million unit annualized rate in July. Single-family permits increased 0.6% to a 930,000 unit rate. Single-family permits are also up 1.3% compared to a year ago. Multifamily permits decreased 1% to an annualized 512,000 pace, the lowest level since October 2020.<\/span><\/span><\/p>\n

Looking at regional permit data on a year-to-date basis, permits are 24.2% lower in the Northeast, 20.3% lower in the Midwest, 15.4% lower in the South and 21.6% lower in the West.<\/span><\/span><\/p>\n

\u00a9 2023 Florida Realtors\u00ae<\/span><\/span><\/p>\n<\/div><\/div>\n

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\nAuthor: kerrys<\/p>\n","protected":false},"excerpt":{"rendered":"