2023-06-20 12:38:30
U.S. housing starts posted their biggest jump since 2016 in May. The number of construction permits also increased, suggesting that housing construction is on track to help boost economic growth.
Key point U.S. housing starts rise 21.7% month-on-month to 1.63 million units annually, the highest level in about a year The previous month was revised down to 1.34 million units (preliminary figure of 1.401 million units). The number of housing construction permits was revised down to 1.49 million, an increase of 5.2% from the previous month.
Single-family housing starts rose 18.5% to an 11-month high. Construction starts for apartments and other collective housing increased by more than 27%.
The figures confirm comments from Federal Reserve Chairman Jerome Powell last week that the housing market is showing signs of stabilizing. Resilience in demand, falling material costs and easing supply chain pressures are boosting optimism among homebuilders.
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Housing starts data feed into economists’ forecasts for the impact of housing construction on gross domestic product (GDP) in the second quarter.
However, high mortgage rates have eroded affordability, suggesting that housing demand momentum is limited.
The number of completed construction increased to 1.52 million units per year. The number of detached houses under construction remained almost unchanged at 695,000 units.
See table for detailed statistics.
Original title:US Housing Starts Surge Most Since 2016, Exceed All Estimates(excerpt)
(adds stats details and updates)
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