Housing Starts Rise, But Permits Decline In May

Housing starts rose five percent in May to a seasonally adjusted annual rate of 1,957,000, according to The U.S. Census Bureau and the Department of Housing and Urban Development.

Three of four regions reported increases in housing starts for the month. Construction of new homes and apartments rose 1.7 percent in the Northeast, 8.5 percent in the South and 15.8 percent in the West. Housing starts were down 15.8 percent in the Midwest, following a sizeable increase in April.

"The rebound in total housing starts for May primarily reflected typical volatility in the multifamily market, and the modest increase in single-family starts largely reflected a build-out of units that had been sold and permitted earlier," said NAHB Chief Economist David Seiders. "Strong numbers in the South and West regions may also have been supported by some rebuilding in the wake of last year's record-breaking hurricane season."

Fewer building permits were issued in May, for a seasonally adjusted annual rate of 1,932,000--a 2.1 percent drop from April. Single-family permit issuance was down 2.1 percent on a national basis to a pace of 1.466 million units. The pace of multifamily permit issuance also dipped 2.1 percent to a pace of 466,000 units for the month.

Housing completions in May also took a dive, falling 8 percent to a seasonally adjusted annual rate of 1,878,000.