Single-family starts increased 4.2% to a 1.10 million seasonally adjusted annual rate.
Overall housing starts increased 3.6% in May to a seasonally adjusted annual rate of 1.57 million units off of a downwardly revised April reading, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The May reading of 1.57 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts increased 4.2% to a 1.10 million seasonally adjusted annual rate. The multi-family sector, which includes apartment buildings and condos, increased 2.4% to a 474,000 pace.
“Single-family starts held firm in May as demand remains strong despite recent gains in new home costs,” said Chuck Fowke, chairman of the National Association of Home Builders (NAHB) and a custom home builder from Tampa, Fla. “However, single-family permits posted a decline as higher construction costs are deterring some residential construction activity. Policymakers need to help the industry's supply-chains in order to protect housing affordability.”