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May 16, 2018 | Housing Starts Retreat 3.7% in April, March Revised Higher

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
Housing starts pulled back a bit more than economists expected in April. Regionally, only the South had a good month.

The Census Bureau’s New Residential Construction report shows a pullback in permits and starts in April.

Building Permits

Privately-owned housing units authorized by building permits in April were at a seasonally adjusted annual rate of 1,352,000. This is 1.8 percent (±1.3 percent) below the revised March rate of 1,377,000, but is 7.7 percent (±0.9 percent) above the April 2017 rate of 1,255,000. Single-family authorizations in April were at a rate of 859,000; this is 0.9 percent (±1.4 percent)* above the revised March figure of 851,000. Authorizations of units in buildings with five units or more were at a rate of 450,000 in April.

Housing Starts

Privately-owned housing starts in April were at a seasonally adjusted annual rate of 1,287,000. This is 3.7 percent (±11.4 percent)* below the revised March estimate of 1,336,000, but is 10.5 percent (±9.7 percent) above the April 2017 rate of 1,165,000. Single-family housing starts in April were at a rate of 894,000; this is 0.1 percent (±11.8 percent)* above the revised March figure of 893,000. The April rate for units in buildings with five units or more was 374,000.

Starts by Region

  • Total -3.7%
  • Single Family Total: +0.1%
  • Northeast: -8.1%
  • Northeast Single Family: -9.7%
  • Midwest: -16.3%
  • Midwest Single Family: -29.8%
  • South: 6.4%
  • South Single Family: 17.2%
  • West: -12.0%
  • West Single Family: -10.1%

Only the South had a good month.

Mike “Mish” Shedlock

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May 16th, 2018

Posted In: Mish Talk

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