July Housing Starts Tumble, but Single-Family Starts Surge

By Paul Ausick Updated Jan 12, 9:04AM EST · Published Aug 16, 10:10AM EDT

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

July Housing Starts Tumble, but Single-Family Starts Surge — © Thinkstock

The U.S. Census Bureau and the Department of Housing and Urban Development reported Wednesday morning that new housing starts in July fell to a seasonally adjusted annual rate of 1.155 million, a decrease of 4.8% from the downwardly revised June rate of 1.213 million and a decrease of 5.6% compared with the July 2016 rate of 1.223 million. The consensus estimate from a survey of economists had been a rate of around 1.225 million.

The revision to the June rate dropped 2,000 new housing starts from the previously reported total.

The seasonally adjusted rate of new building permits fell to 1.223 million, down 4.1% from the upwardly revised June rate of 1.275 million but up 4.1% from the July 2016 rate of 1.175 million. The consensus estimate called for 1.246 million new building permits.

Single-family housing starts slipped in July to an annualized rate of 856,000, down 0.5% from the revised June rate of 860,000. However, they rose by 10.9% year over year in July.

[nativounit]

The July report on new housing starts came in well below expectations and the prior month’s revised estimates. The good news is that starts on single-family housing are way up year over year, the sector where demand has been highest and inventories lowest. As new homes get built, prices should moderate and more first-time buyers will have a chance to enter the market.

Permits for new single-family homes were flat month over month in July, at an adjusted annual rate of 811,000. The rate rose 13% year over year.

Multifamily starts for buildings with five or more units decreased by 11.7% year over year in July and dropped by 12.1% compared with June.

[recirclink id=405453]

[wallst_email_signup]

Contact [email protected] for any questions or corrections.

DISCLOSURE:

Customer must fund their Active Invest account with at least $50 within 45 days of opening the account. Receive a minimum of $15. Probability of member receiving $3,000 is a probability of 0.026% If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Percentages for the $3,000 are subject to decrease. See full terms and conditions.

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org). Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees. Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org). There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation.

Follow 24/7 Wall St. on Google

About the Author Paul Ausick →

Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.