{"id":1247,"date":"2022-09-21T09:14:31","date_gmt":"2022-09-21T09:14:31","guid":{"rendered":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/2022\/09\/21\/u-s-housing-starts-rebound-in-august-on-new-apartment-construction\/"},"modified":"2022-09-21T09:14:31","modified_gmt":"2022-09-21T09:14:31","slug":"u-s-housing-starts-rebound-in-august-on-new-apartment-construction","status":"publish","type":"post","link":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/2022\/09\/21\/u-s-housing-starts-rebound-in-august-on-new-apartment-construction\/","title":{"rendered":"U.S. Housing Starts Rebound in August on New Apartment Construction"},"content":{"rendered":"

<\/a><\/p>\n

SCOTT OLSON \/ GETTY IMAGES<\/p>\n

<\/p>\n

The numbers:<\/strong> Construction on new U.S. homes rose a seasonally adjusted 12.2% in August to 1.58 million, the Commerce Department said Tuesday<\/a>.<\/p>\n

The rise in construction on homes reverses a steep fall in July, where housing starts fell a revised 10.9%.<\/p>\n

Economists polled by the Wall Street Journal expected housing starts to rise to a 1.5 million rate from June\u2019s initial estimate of 1.45 million.<\/p>\n

The annual rate of total housing starts fell from 0.1% from the previous year.<\/p>\n

In June, housing starts were revised to a steeper drop of 10.9% of 1.4 million, as compared to a previous drop of 9.6%.<\/p>\n

Building permits for new homes fell 10% to 1.52 million in August.<\/p>\n

Economists had expected building permits to fall to a 1.62 million rate from June\u2019s initial estimate of 1.69 million.<\/p>\n

Key details:<\/strong>\u00a0On an unadjusted basis, housing starts rose 11.4% in August, after a 13% drop in July.<\/p>\n

The construction pace of single-family homes rose 3.4% in August and apartments rose 28.6%.<\/p>\n

Permits for single-family homes fell 3.5% in August, while permits in buildings with at least five units dropped 18.5%.<\/p>\n

Regionally, construction of homes surged in the Midwest and South. There was a modest increase of housing starts of 1.1% in the West. The Northeast saw a steeper drop of 17.3%.<\/p>\n

Single-family construction in the Midwest led the jump with a 20.8% increase.<\/p>\n

Big picture:<\/strong> The rise in construction reverses a sharp drop in housing starts in July, but only brings starts back to levels in June.<\/p>\n

Starts are still much lower than the 1.81 million level seen in April.<\/p>\n

Overall, economic data reflecting the conditions of the housing market have been weak. Even though starts rose, permits fell 10%, signaling a drop in future projects.<\/p>\n

And even the boost in housing starts may be short-lived: In September, builders said they\u00a0continue to be pessimistic<\/a>\u00a0about the near-term, which hints at further declines in the housing sector.<\/p>\n

Outside of the pandemic, builder confidence is at the lowest level in eight years.<\/p>\n

Depressed buyer demand and rising construction costs have weakened buyer confidence. The sharp rise in rates and high home prices have discouraged buyers, who are finding it hard to afford to purchase.<\/p>\n

Nationally, home ownership as of June this year is at the lowest level since the\u00a0Atlanta Fed<\/a> started monitoring the data in 2006.\u00a0 The median sales price for a new home was $439,400 in July<\/a>,\u00a0according to the U.S. Census Bureau. That in turn has slowed business for sellers and builders, which in turn is prolonging the recession in housing.<\/p>\n

What are they saying?<\/strong> \u201cHousing starts rebounded in August, entirely retracing July\u2019s precipitous fall \u2026 to be sure, I do not believe that we can signal the all-clear for the housing sector,\u201d Stephen Stanley, chief economist at Amherst Pierpont Securities, wrote in a note to clients.<\/p>\n

\u201cActivity is likely to continue to trend lower at least as long as mortgage rates are rising,\u201d he added. \u201cStill, it is good to see that July\u2019s plunge exaggerated the degree of underlying weakness.<\/p>\n

Market reaction:<\/strong> U.S. stocks opened lower after the market opened on Tuesday. The yield on the 10-year Treasury note\u00a0rose above 3.57%.<\/p>\n

The post U.S. Housing Starts Rebound in August on New Apartment Construction<\/a> appeared first on Real Estate News & Insights | realtor.com\u00ae<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

SCOTT OLSON \/ GETTY IMAGES The numbers: Construction on new U.S. homes rose a seasonally adjusted 12.2% in August to 1.58 million, the Commerce Department said Tuesday. The rise in construction on homes reverses a steep fall in July, where housing starts fell a revised 10.9%. Economists polled by the Wall Street Journal expected housing…Read More→<\/a><\/p>\n","protected":false},"author":0,"featured_media":1248,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1247","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts\/1247","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/comments?post=1247"}],"version-history":[{"count":0,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts\/1247\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/media\/1248"}],"wp:attachment":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/media?parent=1247"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/categories?post=1247"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/tags?post=1247"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}