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Privately owned housing starts in July were at a seasonally adjusted annual rate of 1,211,000, according to the U.S. Department of Housing and Urban Development (HUD) and the Census Bureau’s new residential construction statistics for July 2016. This is 2.1 percent above the revised June estimate of 1,186,000, but is 5.6 percent above the July 2015 rate of 1,147,000. Single-family housing starts in July were at a rate of 770,000; this is 0.5 percent above the revised June figure of 766,000. The July rate for units in buildings with five units or more was 433,000.

Privately owned housing units authorized by building permits in July were at a seasonally adjusted annual rate of 1,152,000. This is 0.1 percent below the revised June rate of 1,153,000, but is 0.9 percent above the July 2015 estimate of 1,142,000.  Single-family authorizations in July were at a rate of 711,000; this is 3.7 percent below the revised June figure of 738,000.  Authorizations of units in buildings with five units or more were at a rate of 411,000 in July.

Privately owned housing completions in July were at a seasonally adjusted annual rate of 1,026,000. This is 8.3 percent below the revised June estimate of 1,119,000 and is 3.2 percent above the July 2015 rate of 994,000. Single-family housing completions in July were at a rate of 743,000; this is 0.4 percent below the revised June rate of 746,000. The July rate for units in buildings with five units or more was 275,000.

“New construction is failing to keep up with household formation, meaning that the low vacancies in rentals and the tight supply of homes for sale will continue to be a key theme for housing in the months ahead,” says realtor.com Chief Economist Jonathan Smoke. “Single-family is continuing to show gains, but the gains in permits are weaker than the gains in starts. Builders are starting what they already permitted earlier this year but are not bullish about demand this fall and winter.”

For more information, visit www.hud.gov.

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