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- U.S. housing starts increase less than anticipated in May
U.S. housing starts increase less than anticipated in May
The
Commerce Department reported on Wednesday the housing starts rose by 3.6
percent m-o-m in May to a seasonally adjusted annual pace of 1.572 million, while
building permits fell by 3.0 percent m-o-m to a seasonally adjusted annual rate
of 1.681 (the lowest level since October 2020).
Economists
had forecast housing starts increasing to a pace of 1.630 million units last
month and building permits remaining at a pace of 1.730 million units.
Data
for April was revised to show homebuilding growing to a pace of 1.517 million
units, instead of increasing at a rate of 1.569 million units as previously
reported, and permits advancing to a pace of 1.733 million units, instead of
rising at a rate of 1.730 million units as previously reported.
According
to the report, permits for single-family homes, the largest segment of the
market, decreased 1.6 percent m-o-m in May, while approvals for the
multi-family homes segment plunged 5.8 percent m-o-m.
In the
meantime, groundbreaking on single-family homes increased 4.2 percent m-o-m in May,
while housing starts for the multi-family rose 4.0 percent m-o-m.
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