Housing Starts Head Lower as Multifamily Takes a Dip in June
Nationwide housing starts declined 9.9% to a seasonally adjusted annual rate of 836,000 units in June as construction of multifamily buildings slowed following recent months of strong activity in that sector, according to government figures released this week.
Meanwhile, the pace of single-family production held fairly even, with a decline of less than one percentage point, and single-family permit activity hit a five-year high. NAHB Chief Economist David Crowe noted that the big dip in multifamily production followed an even bigger bounce in that sector in May, and pointed to the fact that single-family starts and permits both rose in three out of four regions as a positive sign. The annualized rate of multifamily production declined 26.2% to 245,000 units in June after a 28.2% gain in the previous month.
Meanwhile, single-family construction slipped by a marginal eight tenths of one percent to a 591,000-unit pace. Regionally, combined starts activity declined 12.1% in the Northeast, 7.4% in the Midwest, 12% in the South and 5.4% in the West in June. Also included in the government's latest report, issuance of building permits declined 7.5% to 911,000 units in June. This too was due entirely to a pullback in the multifamily sector, where permits fell 21.4% to 287,000 units. Single-family permits registered a marginal 0.6% gain to 624,000 units, which was their best pace in five years. Regionally, permits were down 4.6% in the Midwest, 11.2% in the South and 7.2% in the West, but rose 5.9% in the Northeast in June.
Judson Updates House Real Estate Caucus on State of the Industry
NAHB Chairman Rick Judson this week provided members and staff of the House Real Estate Caucus with the builder's perspective on current housing market conditions and what's ahead for our industry. As part of an important briefing arranged by caucus leaders Rep. Mike Turner (R-Ohio) and Rep. Richie Neal (D-Mass.), Rick explained that while housing appears to be on a solid recovery path, there's a great deal of uncertainty among builders right now due to the unresolved debate over reform of the housing finance system and questions about Congress's potential direction on tax reform, with particular regard to the mortgage interest deduction, Low Income Housing Tax Credit and other key housing incentives.
At a time when housing is just starting to get back on its feet and providing positive energy to the economy, Congress should avoid doing anything that would reverse this positive momentum, he said. Similar to previous briefings we have provided to the Real Estate Caucus on the Low Income Housing Tax Credit and owner-occupied housing tax incentives, Rick's appearance was an outstanding opportunity to educate lawmakers about our industry and expand their understanding of our members' top concerns.
NAHB Seeks Changes to Housing Finance Reform Legislation
Testifying before the House Financial Services Committee on July 18, NAHB Chief Executive Officer Jerry Howard told Congress that the NAHB will work with lawmakers to make changes to the Protecting American Taxpayers and Homeowners (PATH) legislative proposal to ensure that it provides the federal support necessary to maintain a strong and liquid housing finance system.
While NAHB agrees that private capital must be the dominent source of mortgage credit, “the historical record clearly shows that the private sector is not capable of providing a consistent and adequate supply of housing credit without a federal backstop,” he said. Jerry also urged House lawmakers to modify the sections of the bill outlining changes to the Federal Housing Administration, and encouraged the committee to move forward in a careful, prudent manner to provide needed assurance for the industry and consumers.
Choose from more than 400 house plan designs that we offer in a wide range of styles and sizes. Some of our more popular house designs include European-inspired Georgian and palladian homes, English manor house plans, Tuscan-style villas, French chateaux, and colonial house plans. Our Tuscan-style villas range from 1800 to 14,814 sf, and Newport classic house designs range from 1500 to 5000 sf. Our starter castles, mansions and estate homes are designed in the grand tradition of some of the most impressive homes in the world. Please feel free to search our house designs offered. Our plans have been built around the globe, from Canada to Dubai, and one could be just for you!
- Tags: ADI News
- Joanne Loftus