Extra Edition / Web Exclusive

Housing Starts Fall 2.1 Percent in May as Downswing Continues

June 25, 2007
/ Print / Reprints /
ShareMore
/ Text Size+

WASHINGTON - Housing starts fell 2.1 percent in May to a seasonally adjusted annual rate of 1.474 million units as the correction in the housing market continued, according to figures released by the U.S. Department  of Commerce. Starts were down 24.2 percent from a year earlier.

"Builders still are cutting back on new production as they work down their inventories in the face of slack home buyer demand," said Brian Catalde, president of the National Association of Home Builders (NAHB).

"The downswing in new housing production is still underway, although the rate of decline has slowed since late last year," said NAHB Chief Economist David Seiders. "We still expect starts and permits to bottom out late this year before a systematic recovery process begins in 2008."

Starts of new single-family homes were down 3.4 percent for the month to a seasonally adjusted annual rate of 1.170 million units. The May pace for single-family construction was 26 percent below a year earlier.

Multifamily housing starts increased 3.1 percent to a seasonally adjusted annual rate of 304,000 units for the month. The pace of multifamily construction was 16 percent below May 2006.

Total building permits increased 3 percent in May to a seasonally adjusted annual pace of 1.501 million units, reflecting a spike in multifamily permits. Total permits were down 21.7 percent from a year earlier.

Single-family permit issuance was down 1.8 percent to a pace of 1.056 million units for the month. This was 27.7 percent below a year earlier. The rate of multifamily permit issuance increased 16.5 percent to 445,000 units for the month. This was 2.8 percent below the May 2006 pace.

Regionally, starts of new homes and apartments were up in the Northeast and Midwest in May by 15.7 percent and 15.5 percent, respectively. Housing starts were down in the South by 1.6 percent and in the West by 19.7 percent. All four regions reported a pace of construction well below a year earlier.

Publication date: 06/25/2007  

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

2014 MCAA Annual Convention

Scenes from the 2014 MCAA Annual Convention in Scottsdale, Ariz.

Podcasts

NEWSmakers: Julian Scadden

Training is an ongoing process. Julian will discuss how you can generate maximum return on time and energy invested training by following a three part process. Listen to this podcast to get expert tips on training, tracking and follow up. 

More Podcasts

THE MAGAZINE

ACHRNEWS

NEWS 04-14-14 cover

2014 April 14

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

SERVICE CALLS POLL

Which statement on service calls best applies to your business?
View Results Poll Archive

HVACR INDUSTRY STORE

plumbing-hvac.gif
2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

 

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

DON'T MISS A THING

Magazine image
 
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.

STAY CONNECTED

facebook icontwitter iconyoutube iconLinkedIn i con